1. Marketing Decision Sciences: Building Businesses and Customer Relationships Not Models DiaMondSUG Mark Van Clieaf MVC Associates International / Toronto • Chicago • Tampa
80 % of reality about CRM Is about Organization, Leadership And Culture
NOT TECHNOLOGY
Many of the ECRM tools , collabortive filtering etc based on product view NOT customer view
© Copyright 1988, 2000, MVC Associates International

2. Customer Insight: Taking Organizations to a Brave New World Of Customer Centric Marketing
Mass vs. Target Marketing & Shareholder Value
What the Internet has taught us about CRM
Key CRM Measurement Principles
Three Waves of Customer Centric
Wave 1 - Loyalty / Frequency
Wave 2 - Customer Value Optimization
Wave 3- Dynamic Customer Management ( true CRM )
Datamining - Customer Not Campaign Centric
Branding in a Digital / CRM World - customer processes and models integrated
Integrating Different inputs of Customer Insight ( online & offline )
From Analyst to General Manager the New Career Path
© Copyright 1999, MVC Associates International

3. Customer Relationship Management CRM / E-CRM
Has become a catch-all term for many - confusion !
Most enterprises do not really understand the organizational / change management / metric issues of true implementation
Forrester Research suggests the Web will assist in technology migration around legacy systems
The web is fragmenting marketing applications for CRM / E-CRM because technology vs. client driven: ( separate suppliers / datamarts for / affiliate programs, call centers / e-promotions / banners etc )
CRM is a catch all
Many clients think it is about
Technology or Direct Marketing
Much confusion
© Copyright 1999, MVC Associates International

4. A New Marketing Mindset
One to One Enterprise
Peppers & Rogers
The Loyalty Effect
Reicheld
All Consumers Are Not Created Equal
Hallberg
The New MaxiMarketing
Rapp & Collins
The Profit Zone
Slywotzky & Morrison
Grow to Be Great
Gertz & Baptista
Real Time
McKenna
NetGain
Hagel & Armstrong
Digital Darwinsim
Schwartz
Futerize Your Enterprise
Siegel
Customers.Com
Seybold
Now or Never
Modahl
How many of you have read at least 50 % of these books
Well you now have your gift list for the holiday season.
The over arching theme is that a new customer centric mindset ( vs product centric ) is require for success in the new world we live in
I have to share with you one of my favorite stories about marketers who get it and those who don’t
KFC
© Copyright, MVC Associates International, 1998

5. Companies Want A Single, Integrated View, But Have Work To Do
“Do you have a single, integrated view of the customer today? Will you in two years?”
While many talk about CRM
When you as real basic questions about
How many of your best customer left you in the last year
What was the profit contribution of those customers who left you
Source: Forrester Research
MVC Associates International

6. Optimization Across An Integrated Growth Framework
Marketing Investment
Optimization Across An
Integrated Growth Framework
Branding
Bonding
Today
Through the richness of customer information
And more demanding customers and profliferation of channels to reach the customer marketing is much more complex
With 100’s of micro-segments whose economic value, attitutudes and interest are different
Bundling
Product Attribute
Geography / Channel
Customer
1) Value
2) Processes
3) Segments
4) Information Management
Billing
© Copyright, MVC Associates International, 1998

7. Internet Shifts Purchasing Power to the Consumer
Reduces consumer search cost for information
Reduces value of the brand that was information based
Connects consumers with the most relevant vendors in a timely fashion
Extracts as much value for consumers as possible
Price will become a commodity factor and re-define its role in the purchase decision
We all know that the internet has put the customer in control
© Copyright 1999, MVC Associates International

8. Mass Marketing Skills Applied to the Internet
Value America
eToys
Ashford.com
egghead.com
drugstore.com
$3,323
$10,370
$1,562
$1,456
$3,221
Retailer
$145
$1,066
$211
$261
$607
- 96%
- 90%
- 87%
- 82%
- 81%
Peak market cap
(millions)
Current market cap as
of 3/31/00
10/99
11/99
7/99
Date
Stock price relative
to IPO
-100%
-50%
+50%
+100%
+150%
+200%
+250%
+300%
3/00
2/00
1/00
12/99
Note for comparison: Amazon.com
is 4,444% above IPO price
4/99
When you apply mass marketing and the 4 P’s to the internet this is what you get.
People wondered why the stock market re-adjusted. but when people did the business and marketing plans for these type of companies they failed to look at
Cost / customer acqusition
Future potential of the customer
LTV
And wonder why there was no path tp profitability
Source: Forrester Research
MVC Associates International

9. Pets.com Mass Marketing vs.. Target Marketing Skills
Why would you spend $ 70 + million in mass advertising and buy super bowl commercials to reach Pet owners and acquire at an acceptable cost per customer acquisition ???
The answer is if you look at the segmentation of the highest LTV pet owners , and those with a willingness to use the internet ( the most targeted marketing medium ever ) you wouldn’t !!!
Unless your marketing training / mindset was as a MASS Marketer
MVC Associates International

10. E-Commerce vs.. E-Business Marketers Must Recognize The Difference !
E-Process - (automating / optimizing processes through the internet)
Napster, E-Loan, Pets.com, E-Toy and many others
E-Commerce (selling online through the internet)
LL Bean, AMEX, Wells Fargo, American Airlines
E-Business (transforming the business model & value chain and becoming a customer led enterprise through the internet)
Dell, Cisco, Schwab, Enron
E-Industry ( transforming the industry structure through the internet - i.e. B to B exchanges )
( GM/Ford/Daimler-Chrysler ) = Covisint
Too many companies are not clear on the difference between
• E-commerce / E-Business / E-Industry
If a company is truly intentional on driving an E-business strategy
Then the marketer ( as the chief customer champion ) must ensure a seamless integration of ALL touchpoints that is
channel neutral and an integration across product / service categories. -
thus the ability to bundle products and services across multiple lines of business , is the driving strategy
© Copyright 1999, MVC Associates International

11. Growing Shareholder Value and Linking to Customer Value
Analysts need to be educated about new metrics to monetize the customer base (inaccurate valuations)
New Customer Metrics & Incentives Required !!
Depth of Relationship
Breadth of Relationship
Duration of Relationship
Revenue & profitability of relationship
Future profit potential of the relationship
LTV
Measures at the individual and customer portfolio level to drive shareholder value
The wall street analysts don’t understand the new metrics required
Tp monetize the customer !!
Marketers to optimize marketing spending / ROI need to embrace the new metrics in the marketing plans & tactics of evaluating - interview question
• Depth of the relationship - share of wallet
• Breadth of relationship - # products & services
• Duration of relationship- where in the customer lifestage
• Profitability of total customer relationship
• Future profit potential
• Life time value ( which includes acquisition costs )
© Copyright 1999, MVC Associates International

12. Customer Centric Results New Structure & New Skills
Case Study
Reinvented Customer Centric Business Model
million customers and NO marketing department
million customers and st Century marketing department
in 3.5 years 6 X revenue increase - $ today 700 million +
in 3.5 years 2.5 X NOPAT increase with $ 10 to 15 million technology investment
on the same # of customers ( Not Marketshare )
just better customers and management of the customer relationship over time
A lot of CEO’s wonder if a true customer centric strategy really works
In this case study of a company who put in place a customer focused / segment driven marketing organization / processes
© Copyright, MVC Associates International, 1998

13. Analysts / Data Miners and Marketers Must Recognize Which Wave They Are On ?
Wave 1 - Frequency / Loyalty
Wave 2 - Customer Value Optimization
Wave 3 - Dynamic Customer Management
Our benchmarking has uncovered really 3 distinct waves of becoming customer centric which I will address
• Frequency / loyalty
• customer value optimization
• dynamic customer management
© Copyright, MVC Associates International, 1998

14. The Customer Centric Scorecard !
Are you driving a customer strategy ?
Are you measuring at an individual level:
annual customer profitability - P&L - NOPAT $
customer duration / attrition
share of customer in $
future customer potential in $
Do you allocate your marketing investments based on customer value at the individual customer level or micro-segment ?
Do you have a formal org. with SVP, VP, Dir owning each of the following:
Customer Processes, Customer Segments, CIM, Mkt $
Shared Product & Customer P&L objectives with compensation tied to 1 & 3 yr objectives ?
Lets check the audience here
© Copyright, MVC Associates International, 1998

15. Wave 1 Loyalty Has Gone Mainstream
American, United, Continental, Delta, Air Canada, CDN
Marriott, Four Seasons, Hilton, Hyatt, Holiday Inn
Dayton Hudson, Sears, Saks, Neiman Marcus, Bay
Blockbuster, Eddie Bauer, Toy-R-US, Waldenbooks, LL Bean
Harley Davidson, BMW, Nissan, General Motors, (Ford)
AOL/First USA, American/ Citibank, ( Schwab / Household), (Blockbuster / Nationsbank) , Ameritech / Household, Sprint / MBNA, Hilton / AMEX,
AT&T, MCI, Ameritech, Bell South, Stentor
Check out Frequency Marketing’s Web Site
Many people created loyalty programs without clear business case
© Copyright, MVC Associates International, 1998

16. Loyalty Program Trends in the 21st Century
Simplify Programs
Control and Decrease Costs
Make Relevant to the Customer
Define & Measure Program Financial & Customer Results
Shut Down where Not Adding Value to Customer & Shareholder rel’shp
Re-position as part of broader Customer Strategy ?
After the were in wanted to fix them
© Copyright, MVC Associates International, 1998

17. Loyalty Programs # 2 application for Smart Cards
Percent of 51 Card Issuers Interviewed
Stored Value
Loyalty Program
Internet Security
Micropayments
Transit
Secure Electronic Transactions
Ticketing
Electronic Benefits Transfer
Telephone
Other
Undecided
Providing rich customer information was real value of programs
In Europe and South America Smart Cards as vehicle for currency played a larger role
smart cards starting to take off here due to benefit for
Internet security
Overall provide a customer view the relationship
Source: Forrester Research
MVC Associates International

18. Loyalty Programs Online But not Re-invented
MVC Loyalty Program Research /2000
Launched due to competitive issues NOT good business case
No true understanding of long term financial impact on profits and balance sheet liability
Failed to differentiate segments based on customer economic value Acquisition not retention focus - really promotional points
Mix of hard and soft benefits not well researched and way too complicated
Subsidized already loyal customers
Failed to use modeling and customer information to customize reward & recognition, communications and create one to one relationship
Loyalty Programs on line
Turbo charged what was being done poorly
How many airlines still measuring points and miles flown and NOT economic value
© Copyright 1999, MVC Associates International

19. Wave 2 Optimizing Customer Value & Relationship
De-averaging Product Costs
De-averaging Customer Value
De-averaging Risk
De-averaging Price
Optimizing Product Proposition and Marketing Investments at a micro-segment or one to one level
Wave 2 moves from simple understand that all customer are not equal in Wave One to
A de averaging of key elements of marketing
© Copyright, MVC Associates International, 1998

20. World Class Customer Information Management (CIM)
AMEX, Capital One, Lands End, Advanta, Providian, Schwab, Fingerhut, Signature Group, First USA, etc
Large Acquisition and Customer databases
different customer information for each that drives modeling ( descriptive, financial, predictive )
customer valuation - real profit drivers NOT response
targeting and tailoring of offer
customer contact with extensive test, control and experimental design
closed loop process with measurement, feedback and customer learning based on results and “real behavior” over time
Cycle time 24 hours to 2 weeks - 10 million + customers
Thousands of mass customized offers based on segmentation thru marketing technologies
Wave 2 companies have world class CIM
including
© Copyright, MVC Associates International, 1998

21. Too Many Marketers / Data-Miners Are Campaign vs Customer Centric
Strategy
Organization Capability
Value Proposition Development
Customer Contact & Campaign Mgmt
Evaluation & Measurement
Customer, Product, Channel, P&L Goal & Resource Alignment
Integrated Customer, Product, & Channel Compensation
Customer Processes
Customer Segments
Customer Information Mgmt
Customer Marketing Marketing Skills
Mass Customized Product Attributes & Benefits (bundling & co-marketing)
Mass Customized Channel Access & Customer Contact Process Design
Value / Risk Based Pricing Strategy & Payment Options
Mass Customized Promotion to Create Trial
Inbound / Outbound Contact Strategy & Goals
Coordinating & Sequencing
Targeting Models & Test & Control Tactics
Mass Customized Communications Strategy & Creative Development
Customer Information Mgmt & Campaign Tape Production
Back End Analysis, Customer Learning, & Recommendations
Customer, Product & Channel Goal
Process Evaluation
Customer Portfolio Review & Recalibration of Models & Customer Insight
Customer Centric Business Strategy
Customer Portfolio
Organization
Information Technology
Too many marketers / organizations are campaign / product vs customer centric
when marketers get a NO response it could be because the value proposition is wrong and they are not going back to re-define the value proposition to meet a clients needs
Dynamic Customer Focused Test, Learn, & Value Creation
© Copyright, MVC Associates International, 1998

22. Business Strategy
For an enterprise with multiple product categories and or Lines of Business which business strategy ? ( i.e. FI, Telecom )
Leveraging Customer Info to drive:
Product Strategy
Truly Customer Centric Strategy with Dynamic Customer Management - integrates customers / products / channels across Lines of Business (LOB’s) , real time / 24 hr batch
CAN’T do both - creates confusion of decision authorities !
optimizing value of relationship, bundled value proposition, sequencing customer contact, relationship pricing, risk mgmt, channel optimization, etc
Build organization, analytic strategy and technology capabilities around business strategy !
So A Strategic Choice Must Be Made
Product vs Customer
© Copyright, MVC Associates International, 1998

23. Wave 3 Dynamic Customer Management
Integrates and optimizes customers / products / channels in real time ( or batch 24 hr refresh )
FROM Period of Contract TO Life of Customer
FROM Relationship Building TO Community Building
FROM Mass Customized TO Ongoing Learning
Truly put thee customer first in
Strategy
Structure
Organization
Metrics
Marketing Investment Decisions
© Copyright, MVC Associates International, 1998

24. C-Commerce
(Marketing Principles change from outbound communications to
in/out-bound customer interaction, customer choice & mass customization
by channel preferences and value proposition bundles)
Phone IVR Web Teleweb ITV PDA’s
The fundemental change that an E-Business world brings us is that we now have closed loop marketing systems AND
50 % of our new customers will come to us NOT initiated by the marketer executing a campaign
But by the customer searching us out
Except there is one problem 90 % of most companies marketing processes are not set up to deal with a customer coming in-bound
Unsolicited, and looking to create their own customized value proposition
In the future there will be complex product / service / pricing tables that we the marketers will create to allow the customers to create
their own product / service that meets their own personal needs
This is what companies like Fedex and Verizon Wireless are doing already
Business rules database
Customer profile database
Interactive history database
© Copyright 1999, MVC Associates International

25. The Customer Portfolio
10,000,000 Customers
$ 5,000 per customer
Number of Customers
Average Annual Profit Contribution per Customer
Young Wannabees
One of my favorite interview questions is you are meeting with a CEO and he says this is what I got what would you do to grow the business ?
First question do you get rid of these unprofitable customers ? How many of you would get rid of these unprofitable customers ?? Show of hands
No because they could be very profitable but you have low share of their wallet ? But if yo increase share of wallet they could be real profitable !!
Classic Family
Affluent Wealth
Just Started
Edge Walker
Die Broke
College
DINK
Offshore
Current Value
Transaction driven customer segments related to product and channel usage and lifestage / lifestyle
negative $ 2,000 per customer
© Copyright, MVC Associates International, 1998

26. Better Practices in Customer Value Investment
700,000 Customers 1 2 3 4 5 6 7 8 9 H M L
Future Value Potential
Current Share of Customer
Double Income No Kids
Current Annual Value H M L
Without information on
Share of customer and future potential you can not optimize
Your customer and marketing investments
Also need info on preference and attitude of customers towards you and your competition
To predict how they will vote with their wallet H 1 2 3 M
Targeting Your Highest Value Customers
Duration /
Attrition 4 5 6 L 7 8 9
Transaction driven customer segments related to product and channel usage and lifestage / lifestyle
© Copyright, MVC Associates International, 1998

27. Strategic vs Tactical Analytics
10,000,000 Customers
Customer Value Strategies
$ 5,000 per customer
Future Value
Customer Value Tactics
Number of Customers
Average Annual Profit Contribution per Customer
Profit Potential & Value Gap
Young Wannabees
So how can you move the value line and close the value gap ?
Both tactics short term
And customer strategies longer term as customer migrate across segments
Classic Family
Affluent Wealth
Just Started
Edge Walker
Die Broke
College
DINK
Offshore
Current Value
Transaction driven customer segments related to product and channel usage and lifestage / lifestyle
negative $ 2,000 per customer
© Copyright, MVC Associates International, 1998

28. Current Enterprise / Product Goals
Data Mining To Create Optimization Customers / Products / Channel Goals & Marketing Investment / ROI =
Current Enterprise / Product Goals
Future Customer Goals
Revenue / Cashflow
Development
Acquisition
Win-Back
Segment A
Segment B
Segment C H M L
1 and 3 Year Goals
ROE
ROA
Fee / Revenue by Product
Contribution Margin by Product
SG&A / Expense Ratio
EBIT
Free Cashflow / EVA / SVA
Our job as marketers is to help the organization make the transition from seeing the business from a product view to a customer view
And show how the acquisition , customer development and win-back metrics can arrive at the same bottom line as a product view
One bank actually did a product profitability analysis and then follow up with a customer profitability analysis and found that 50 % of their unprofitable products where of NO interest to their 20 % of customers who made up for 100 % profit so they eliminated those products
and tripled the overall profitability of the bank
Translate / Align
© Copyright, MVC Associates International, 1998

29. CRM / E- CRM Consolidates Rules Across Channels And Functions
Our Job is to design the business rules that determine
Ths customer experience at each touch point
Source: Forrester Research
MVC Associates International

30. Designing The Customer Experience
(Entertainment, Information / Content , Information-Based Marketing
Online Purchase, Customer Service)
So in the near future we will design an integrated customer experience
That may include things like James Bond movie, where you can stop the action, click on the new BMW he is driving, to get the lastest technical specs, order a BMW leather jacket, get 10 $ off your next oil change, and have a dealer call you to take you for a test drive
Engineering this type of experience, wil take a lot more than a couple of computer folks building websites out of their basement
Source: Forrester Research
MVC Associates International

31. Executive Level Sponsorship
Business Strategy Customer Centric Wave 3
CEO & Exec team committed to 2 to 5 year infrastructure investment strategy and have vision of the future of technology enabled marketing
Have allocated investment of X marketing dollars over Y years for proof of concept
CEO & Exec team prepared to make tough decisions on change organization structure, marketing $ allocation, measurement
Executive Sponsorship is Key
RBFG Story - Rager re Key Decisions
One client Vice Chairman
© Copyright, MVC Associates International, 1998

32. Identifying The Organizational Hot Buttons
“ It was when competition heated up and there was significant price pressure, that we needed to better understand our customers, their needs / preferences, along with current and future value Database and Relationship Marketing is the key to optimizing our investments in our customers, and our customer contact strategy across multiple channels ”
Chuck Schwabab wants everyone as a customer
So the challenge of the CRM team is to find ways to manage the relationship to make unprofitable customers profitable
(Vice President, Database & Relationship Marketing, Charles Schwab & Co)
© Copyright, MVC Associates International, 1998

33. New Skills To Action the Customer Insight
“ We recently spent millions of dollars to Re-engineer our acquisition process and create a leading edge Customer Information Management Capability ! The Problem is very few in our marketing team, or at our direct marketing agency can provide us any leadership on how to use this customer information to impact our bottom line”
This is NOT just about technolgoy as some believe
This is about skills and capabiilties
Amex measuring wrong stuff and still mailing complete file based on risk
( Global Vice President Customer Information Mgmt, AMEX, HQ)
© Copyright, MVC Associates International, 1998

34. The Waves of Customer Centric
Product Centric
Product Centric Migrating to Customer Centric
Customer Centric
Business Strategy
Time of Sale
Annual Business Plan
Period of Contract
Life of The Customer
Planning Horizon
Price, Delivery, Convenience
Customer Support
Ease of Upgrade over Time
Purchase Drivers
Product Feature / Benefit, Fixed & Uniform
Mass Customized Training, Service, Support
Customer Knowledge, Ongoing Learning, Anticipating Needs
Source of Value
Batch, Points & Rewards, Outbound
Batch (2 wks-24hr) Product Purchase Data, Customer Value Scoring, Outbound
Real Time, Integrated Across LOB’s, Inbound & Outbound
CIM
Not In Place
Customer Processes, CIM
Enterprise Wide Customer Processes, Customer Segments, CIM
Customer Org Design
Product Brand Equity
Relationship Equity
Community Equity
Marketing Objective
Product P&L
Product P&L & Starting Customer Metrics
Customer Value & Duration, Product & Channel P&L, EVA / SVA
Compen-sation
Wave 1
Frequency / Loyalty
Wave 2
Customer Value Optimization
As you contrast the 3 waves
You go from
• time of sale to period on contract to Life of the customer
• brand equity to customer equity to community equity - ever heard of the Harleys Owners group
• no customer management process, to acquisition and retention process by line of business to enterprise wide customer management
• Lastly I am a home theatre buff and for 4 years in a row had change
my processor , and finally I bought a meridian home theatre processor and now when new technology like DTS and THX comes out I just upgrade a chip and software - I am now as customer for life
Wave 3
Dynamic Customer Management
© Copyright, MVC Associates International, 1998

35. Customer Value Champion
Customer Value Organization Design How Would You Organize to Create Customer Value ?
Customer Value Champion
Customer Information Management
Process / Segment Owners
Acquisition & Activation Process Owner
Development & Loyalty Process Owner
Win-Back Process Owner
College
Just Started
Young Wannabees
Classic Family
My other favourite interview question is
If you were to organization a customer focused mareketing department
Would you have customers segments reporting to customer processes or customer processes reporting to customer segments ?
50 % candidates don’t understand the question
35 % said they did not think there was more than one way to organize
15 % said good question, I jave thought about this and it may not be right but here is my point of view
DINKs
Edge Walker
Affluent Wealth
Die Broke
Offshore
© Copyright, MVC Associates International, 1998

36. Marketers / Data miners as Change Agents in Riding Wave 3
50 % of the Customer Marketing teams role is about change management NOT marketing
Barriers to Customer Centric - Wave 3 Implementation
Failure to put your best marketers / analysts on the customer team
No dedicated customer marketing resources / $
No shared KPM’s between Customer & Product teams
No shared incentives
No Product Profitability Data at ALL
Behind on product P&L business plan - will divert resources
Lack of data access, architecture, user tools
Lack of CEO & Exec Team Leadership Commitment & Understanding
For those marketers who are championing a true customer centric strategy, your role is 50 % about change management and not Marketing
Chase story / Large FI stayed 2 days and quit
© Copyright, MVC Associates International, 1998

37. The New Killer B’s of Marketing Require a New Analytic Mindset
From the 4 P’s to the Killer B’s
Branding
shifts from product to enterprise branding
shifts from snap shot to positioning and perception over the customer rel’shp life-cycle
Bundling
creates new value propositions that deepens rel’shp i.e. meta-level product mgmt
creates competitive advantage with some customer segments
Bonding
executes the Brand Promise at each “Moment of Truth” - Branded Customer Experience
integrates all - touch points - links to channel preference, life-stage / lifestyle
Billing
recognizes bundled pricing strategy / LTV / Risk
recognizes preferred payment methods / evolving E-commerce
When Interview marketers today where my executive search hat
I am looking to see if they understand the shift in mindset in moving from the 4P’s of marketing, when I was in mainline marketing 20 years ago to the new killer B’s
This includes
• Branding - new defin which I addrs later on
• Bundling - take a total customer relationship view in developing value propositions
• Bonding - which engineers a seemless experience across all the touch points
• Billing - receconize pricing and LTV / Risk across
the total customer relationship - not products/ brands in an analog world defint
© Copyright, MVC Associates International, 1998

38. Branding Skills For Target Marketing / CRM
Marketing Element
Customer Development Strategy
Branding Objective
Value Proposition
Linked to the Brand
Relationship Between Customer & Brand
Marketing Communication Strategy
Tools for Branding
Measurement
Branding
Mass Marketing
Acquisition / Activation
Awareness, Knowledge
& Relevance with the product
One dimensional and channel dependent
Fixed / Static
Linked to product benefit
Initiated by the marketer
Individual product / service level
Static relationship
One way communications developing
single message, image & brand perception
Advertising, Name Development, Package
& Collateral Material Design, Trademark, etc
Recall
Customer Satisfaction
Market Share
Branding
Target Marketing
and
Customer
Relationship
Management
Complete Customer Lifecycle = Acquisition / Activation, Usage Stimulation, Cross-Sell new products / services, Retention, Win-back
Customer Involvement & advocacy of the brand promise
Bundle of products / services and channel independent
Flexible and customized to micro-segment / individual customer needs
Linked to the brand promise
Initiated by the customer & or marketer
Enterprise level relationship
Dynamic involvement depending upon suite of products / services needed
Two-way customer dialogue tailored depending upon stage of customer relationship, customer segment,
and current and potential customer profitability
Engineering the total customer experience including processes, technologies & training to ensure that each customer touch point (call centre, mail, retail, , website, etc) provides an integrated experience consistent with the brand & relationship
ROI on marketing expense
Share of Wallet
Current or life-time profitability
Is the brand and branding in a mass marketing world the same as branding in a customer centric / one to one world ? We we think many are confused about branding in an E-business world
• Is the perception of the brand the same as propsect loyal customer vs someone who just severed their relationship with you - NO - yet most people still seeing branding as a static concept
• How many people have set up their marketing processes for a two way dynamic relationship which allows the customer to self create their own customized value proposition ? Engineering the exerience is what Branding is in an E-Business world
• Share of wallet and life-time profitability now replace recall and marketshare as the key measure of successful branding
© Copyright 1999, MVC Associates International

39. The New Skills For Customer Insight
What Are They Worth Today / Future and Risk of Loss ?
Financial Modeling - who are the best customers and optimization of marketing investments
What Do They Look Like / What Did They Really Do ?
Descriptive Modeling
Customer Profiling - need , interest, preference
Demographic / Lifestage / Lifestyle profiling
Credit Modeling
Web Usability Modeling / Navigation
Site Abandonment analysis
What Might They Do in the Future ?
Predictive Modeling
Risk Modeling
Attitudinal profiling
Channel Preference profiling
Applying the Insight for Customer Managed Relationships
Customer Strategy Development ( integrating into the customer processes )
Customer Experience Design and Personalization, Targeting and Tracking across ALL points of customer contact
Value Proposition Development
© Copyright 2000, MVC Associates International

40. From Analyst to General Manager
Analyst - building models and developing insight and
Process owner - integrating models into customer management and interaction processes and driving change ( start to own revenue / margin / ROI )
Strategist - creating future revenue and margin streams from new products and services and owning the investment and return ( P&L ) - leading multiple function and processes
General Manager - building new business models and leveraging customer insight
© Copyright 2000, MVC Associates International

41. to Reinvent Yourselves ?
What Are You Doing
to Reinvent Yourselves ?
“ My conviction is also growing that the media and advertising
industries represent an expanding opportunity for us. Anything
that can affect industries whose total revenue base is many hundreds
of billions of dollars is a big deal.
I think there is one more step for Intel to take to prepare
ourselves for the future. We should try to derail our own
strategies and reinvent ourselves. We need to update our own
genetic make-up to be more in tune with the new environment.
What I now think is noise, in fact, is a strong signal that
something has significantly changed. Does this seem overkill ?
Not to me. Only the paranoid survive.”
( Andy Grove, CEO Intel )
I hope this has given you a sense of how we see the brave new world of marketing and marketing skills for an CRM & E-Business world being re-invented
and would welcome any comments and questions you may have !!
Thank you for your attention
MVC Associates International