Presentation is loading. Please wait.

Presentation is loading. Please wait.

CRM Power Tools for Business Results CRM Power Tools for Business Results Intelligence-Based Marketing CRM Power Tools for Business Results CRM Power Tools.

Similar presentations


Presentation on theme: "CRM Power Tools for Business Results CRM Power Tools for Business Results Intelligence-Based Marketing CRM Power Tools for Business Results CRM Power Tools."— Presentation transcript:

1 CRM Power Tools for Business Results CRM Power Tools for Business Results Intelligence-Based Marketing CRM Power Tools for Business Results CRM Power Tools for Business Results Intelligence-Based Marketing Peter Heffring President CRM Division All rights are reserved. Members of MSI and academic researchers may make limited copies of this presentation, electronically or in print, solely for their internal, non-commercial use. Any other use of this presentation—including reproduction for purposes other than those noted above, modification, distribution, or republication—without prior written permission of the Author is strictly prohibited.

2 © 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, Teradata, a division of NCR, All Rights Reserved How Do Your Customers ‘Experience’ Your Business? Intelligence-based marketing The company knows who you are, what you prefer, and communicates with relevant, timely messages, using the power of analytical intelligence to detect patterns, decode strands of information and create meaningful offers and value ‘Schizophrenic’ marketing The company has delusions about who you are, forgets what you prefer, and tries to reach you with off- target communications that alienate you – based on fragmented data & inadequate faculties, resulting in confusing, chaotic ‘multiple personalities’

3 © 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, Teradata, a division of NCR, All Rights Reserved I can’t believe it. I’ve been a good customer for ten years. And they still don’t ‘get’ me and the things that interest me.

4 © 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, Teradata, a division of NCR, All Rights Reserved Hey! Just because we bought Dad a tool set last year does not mean we want to see every drill bit in your inventory.

5 © 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, Teradata, a division of NCR, All Rights Reserved I have 2 million frequent flyers with your airline and still do not get respect

6 © 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, Teradata, a division of NCR, All Rights Reserved Remember … … the bad times?

7 © 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, Teradata, a division of NCR, All Rights Reserved I need personal attention - help me!

8 © 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, Teradata, a division of NCR, All Rights Reserved Give me convenience!

9 © 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, Teradata, a division of NCR, All Rights Reserved Help me – asap! Service – now! Respect me! Quality of life! Convenience!Convenience! Make it easy! Don’t embarrass me!

10 © 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, Teradata, a division of NCR, All Rights Reserved The Marketer’s Task: Understand and Communicate Successfully With a Multitude of Individual Customers Every Day 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

11 © 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, Teradata, a division of NCR, All Rights Reserved Who are my most loyal customers and what promotions are most effective? Do you treat your loyal customers differently than your others? When a customer touches your business, do you have the capability to engage them with targeted messages? How do you determine the level of personalization you give? Which of your profitable customers are at risk of leaving? What are the buying habits of my best customers? Are you matching products and services to the right channels? Can you detect behavioral events and provide timely and relevant customer communications? Customer Relationships & CRM - More Complex Than Ever Before Who are your most valuable customers and what are their attributes? What products do my customers purchase and what do they crossover purchase? What will my customers want next? What product promotions increased sales, transaction size, frequency and crossover? acquire Do you know what constitutes a good customer? Are you using customer lifestyle/lifestage data to find prospects? Can you match customers to the right products and services? Can you use the above knowledge with your current prospect lists to target your marketing efforts? grow the relationship reward loyalty retain customers Today’s marketers have a lot to manage!

12 © 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, Teradata, a division of NCR, All Rights Reserved The Challenge: Find Patterns, Decode Messages, Turn It All To Business Advantage 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?

13 © 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, Teradata, a division of NCR, All Rights Reserved Business Needs & Expectations Today’s executives must justify: Every dollar spent Every initiative And must show: The link between dollars spent, these initiatives and return on customer relationships

14 © 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, Teradata, a division of NCR, All Rights Reserved 45% of companies are considering CRM projects 1 45% of companies are considering CRM projects 1 37% have installations under way or complete 1 37% have installations under way or complete 1 CRM budgets are not being slashed despite slow economy 2 CRM budgets are not being slashed despite slow economy 2 1 Source: Forrester Research, Source: Interactive Week, Aug 20, 2001 Capitalize on CRM Technology

15 © 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, Teradata, a division of NCR, All Rights Reserved Analytical CRM ‘Power Tools’ Capabilities that Companies Must Have 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

16 © 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, Teradata, a division of NCR, All Rights Reserved Manage the Total Communications Environment with Analytical CRM Direct Mail /Fax ATM/Kiosk Call Center Agent Store /Branch Analytical CRM

17 © 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, Teradata, a division of NCR, All Rights Reserved What is CRM really trying to do? 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

18 © 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, Teradata, a division of NCR, All Rights Reserved Insight Inter-Action Timely Messages Disk array Data Warehouse Intelligence Operational CRM Systems Capture Data All Channels All Touchpoints ATM Internet Extranet / Fax Sales/ Store / Branch Direct Mail Kiosk Agent/Call Center Lead With Analytical CRM For Mission-Critical Intelligence Action Analytics and Modeling Personalize Communication Communication Delivery Communication Planning Customer Optimization Relevant Offers Timely Messages

19 © 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, Teradata, a division of NCR, All Rights Reserved How Analytical CRM Functions Analysis Analyze customer profiles & behavior Target customers Evaluate response Event Analysis Communication Plan continuous communication dialogues Define batch and real-time event rules and trigger Optimization Prioritize and limit communications by channel Regulate frequency and quantity of contacts by channel Optimize customer communications through contact modeling Personalization Generate personalized offers by customer Build personalization Rules Modeling Build and analyze predictive models Score customers Interaction Deploy outbound or manage pending inbound/event- driven communications Manage workflow of interactions Personalization Merge Real-time personalization Data Warehouse Industry LDM ALL CUSTOMER INTERACTION DATA

20 © 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, Teradata, a division of NCR, All Rights Reserved Percentile Analysis 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

21 © 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, Teradata, a division of NCR, All Rights Reserved Cross-Segment Analysis Key Benefits –Identify key characteristics of intersections between customer groups –Ability to target and save customer intersections –Represent and analyze relationships between segments & attributes

22 © 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, Teradata, a division of NCR, All Rights Reserved Pattern Detection 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

23 © 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, Teradata, a division of NCR, All Rights Reserved Response Modeling Benefits –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

24 © 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, Teradata, a division of NCR, All Rights Reserved Benefits –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. Personalization Rules

25 © 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, Teradata, a division of NCR, All Rights Reserved Communication Manager 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

26 © 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, Teradata, a division of NCR, All Rights Reserved Enterprise Rules (Q1 2002) Key Benefit –Provides a framework to define rules across the enterprise that trigger marketing opportunities

27 © 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, Teradata, a division of NCR, All Rights Reserved Personalization 6.) Prioritize and Optimize mix of communications deployed to channels, may use profitability scores 4.) Communication plan created. Communications approach and offers linked to LTV campaign. 1.) LTV Campaign model created and run to calculate campaign scores 3.) Create segments according to an LTV campaign model - propensities and needs 3.) Create segments according to an LTV campaign model - propensities and needs 7.) Communication Plan handed off to channel systems (e.g. Siebel - Broadvision) for execution 8.) Action, Response and Results captured and handed back to Communication Manager for campaign analysis. 8.) Action, Response and Results captured and handed back to Communication Manager for campaign analysis. AnalysisModeling Communication OptimizationInteraction 10.) LTV Campaign Responses modeled to improve campaign targeting and profitability 11.) LTV Campaign Results Available for Analysis via OLAP Reporting by Marketing or LOB 11.) LTV Campaign Results Available for Analysis via OLAP Reporting by Marketing or LOB 9.) Costs of LTV Campaign calculated based on actual channel activity 5.) Set personalization rules to format communications appropriately for each customer. 2.) Model Customer Behavior to identify life cycle events 2.) Model Customer Behavior to identify life cycle events Analytical CRM in Action Customer Life Time Value Campaign

28 © 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, Teradata, a division of NCR, All Rights Reserved 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 Achieve Positive Business Results … Over Time

29 © 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, Teradata, a division of NCR, All Rights Reserved 570,000 leads, 100 campaigns in 6 mos $4.4 billion of new business in six months Retention rates of 98.4% 28.7% increase in profit in six months Four continents – 15 countries $250 BB Australian in assets 9 million customers 600 home improvement stores $15 BB annual sales 40,000 products on the shelves Triple digit ROI on total DW + CRM investment after 4 months = 265% High double-digit campaign responses Named 2000 NCDM winner for best results Generated $1 M in one district in one week 6,000 leads in 5 weeks – and 40% generated a sale or service opportunity 9 or 10 customer sat – on 10pt scale Largest retail bank in the world 4,500 consumer banking centers Serving 28 million households Market leaders taking the first steps have proven the CRM business case

30 © 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, Teradata, a division of NCR, All Rights Reserved Your CRM Process Must Balance Quality of Customer Experiences Achieve Positive Business Results


Download ppt "CRM Power Tools for Business Results CRM Power Tools for Business Results Intelligence-Based Marketing CRM Power Tools for Business Results CRM Power Tools."

Similar presentations


Ads by Google