1. Building a Customer
Management Framework
Creating an Institutional capability
Ajay Kelkar
Cequity, I di
C it India

2. Agenda
Customer strategy
Marketing-IT dilemma
Data based Marketing roadmap
Building blocks for Enterprise marketing
Best Practices to support Customer strategy

3. Building Blocks for Customer
strategy

4. Building blocks f C t
B ildi bl k for Customer
strategy
Marketing programs that create substantial value
require four integrated elements:
A strategy for managing customer relationships
that is tied to business economics
Compelling, well-executed programs that drive
customer value levers
Technology to support data management and
customer experience
The organization that underpins the ability to
deliver and sustain the first three elements
High performing companies create the structure, skills &
processes to leverage customer data

5. Customers must be your
organizing principle
ii i il
How to convince your CEO to make the leap:
Set clear expectations and define roles with your
–
CEO.
Define customer groups with your strategic planning
–
function.
Build a business case with finance.
–
Identify technology gaps with IT.
–
Develop a culture strategy with HR.
–

6. Maturity model for
customer centric
customer-centric marketing
• Business need: Drive customer-focused strategy across lines of business
Strategic
g
•F
Focus: C t
Customer segment management, customer experience, and contact
t t t i d tt
strategy
Customer-
focused •• Business need: Program optimization within business
Benefit: Delivering on corporate business goals: revenue, customer
Consultative
• Focus: Consultingof wallet
profitability, share on micro-segmentation, program strategy
and calendar
• Benefit: Incremental revenue through program innovation
(e.g., new channels, program integration, etc.)
Value • Business need: Increase campaign velocity and Responsive
individual campaign ROI within lines of business
• Focus: Targeting analytics (e.g., response
propensity) and operational excellence
Service- • Benefit: Improved response and ROI
focused • Business need: Drive efficiency through
f d
Tactical
consolidated data, skills, and operations
• Focus: Building an integrated data asset
• Benefit: Cost savings, new revenue streams
g
Sophistication
Source: Forrester

7. Who is strategic today?
g y
Strategic
• Gaming/Casinos
g
• Retail banks (a few)
Few marketers have • Travel Consultative
• Catalog
reached the strategic level
Most “sophisticated” groups
• Consumer credit Responsive
are between consultative
• Insurance
and strategic
Industry and business model
Tactical
influence maturity level
• Consumer goods
• Pharma

8. Is evolution necessary?
Strategic
Customer strategy
Ownership of the integrated Consultative
data asset is a critical first step
p
Program performance
P f
Analytic expertise enables
transition from tactical to
Responsive
responsive role
Campaign performance
Improved planning and multi-
channel expertise enables
transition from responsive to Tactical
consultative role Efficiency -- economy of
Effi i f
Development of customer- scale
focused insights — and C-level
buy in — enables transition to
y
strategic role

9. Bridging the gap between IT
& Marketing

10. Bridging the IT/Marketing
chasm
Marketing needs :
To move quickly- as the environment changes
–
Quick execution: to get things done!
–
Needs to show ROI
–
IT needs:
Clearer forecast of where marketing wants to go!
–
A budget
–
Bridging this gap is key to building a Customer management framework
gg gp y g g

11. Getting the enterprise data
data-
rich & information-ready

12. Data is your competitive
advantage

13. What is the roadmap for Data
based marketing?

14. Data-based marketing roadmap
Three critical ingredients for a Data led strategy
Developing Analytical capacity
D li A l ti l it
–
Can be done with a focussed set of people who can then drive
broader “change”
Process based Marketing a tomation
automation
–
Creating “process” mindset in marketing is difficult-do it before
you automate
Establishing a Data warehouse or Data mart
–
Limit the data that you put into the mart
Do not design your datamart with statistician's needs in mind

15. Marketing Technology
backbone –
The power is in the data

16. Building blocks for Enterprise
marketing

17. Building blocks for
Enterprise marketing
Build Predictive
marketing capacity
k ti it
Enable
Focus on the
Marketing
Customer experience
automation
t ti

18. Building blocks for
Enterprise marketing
Build
Predictive
Marketing
capacity
Building Predictive marketing
capacity
– Creation of an advanced
analytics group
Focusing on the Customer
g
experience Enable
Focus
Marketing
– Building Customer lifecycle
on the
automation
Customer
experience
programs
– Key focus on customer on
boarding
Marketing automation
– Creation of a six sigma led
C f ld
automation based process

19. Building Predictive
marketing capacity
Build
Predictive
Marketing
capacity
Creating “quick
segmentation” d k to
t ti ” decks t
“seed” business ideas
Profiling credit card “revolvers”
–
Use analytics to drive
product development Enable
Focus
Marketing
on the
automation
Feature development basis
– Customer
experience
customer behavior
Solve strategic business
Sl b
problems
Portfolio segmentation to
–
identify “balance builders”
y

20. Focusing on Customer
experience
Build
Predictive
Marketing
capacity
Creating customer lifecycle
programs th t address:
that dd
Acquisition
–
On Boarding
–
Usage
–
Enable
Dormancy reduction
– Focus
Marketing
on the
automation
Proactive retention Customer
– experience

21. Enabling Marketing
g g
Automation
Build
Predictive
Start small & automate a robust Marketing
capacity
process
Deploy a Marketing automation
process across the enterprise:
Leveraging the customer base to
–
optimize returns and bottom-line
revenue Enable
Focus
Marketing
on the
automation
Customer
Increase customer profitability experience
–
through deeper, stronger customer
relationships

22. Best practices for Enterprise
Marketing

23. Best Practice 1: Developing
Analytical capacity

24. Developing Analytical
capacity
Create a central Analytical team- give it full
visibility i t b i
i ibilit into business
Focus on selected business drivers
Create insights about that business driver in
shortest possible time
Create
C t a series of segmentation around K
i f t ti d Key
business issues and not one “catch all
segmentation
segmentation”
Actionable Analytics™ is important-it should lead to business results

25. Analytics must influence
decisions
Create Customer-specific metrics and
scorecards and
d d
Embed these into performance
evaluations, i
l ti incentives and fi
ti d financial
il
plans.

26. Best practice 2:Data
Stewardship

27. The Strategic value of
Customer data
IMPLEMENT a Data Stewardship Program
Along with the Brand and Goodwill, the other
–
high-value off the balance sheet asset will be
the Customer Data richness.
There should be a Data Steward who will be
–
cross-functional (Marketing / IT / FinCon)

28. Best practice 3:Data
Readiness

29. Data Readiness
Data would never be ready!
Move forward with “what you have”
Create a hybrid structure to pull data
manually from multiple source systems
GET Data Acquisition SLAs from IT
IT to create business structures to manage data
–
velocity expectation and assign clear SLAs for
data support

30. Creating Data Preparation
Capability
Data preparation is 70-80% of the
problem!
bl !
A variety of business groups would be
chasing the same data!
h i th dt!

31. A lot of Business groups are
looking for similar data!
The convergence of business strategy across different functional areas
is driving a new Integrated Enterprise view of data
Relationship Optimization
CRM
Financial
Risk Financial Performance
Risk Optimization
p
Optimization
O ti i ti
Operations
Process
Operations & Process Optimization
The data overlap between each functional driver is high producing an
Emerging trend towards a single physical enterprise wide EDW

32. Building a Marketing
database
Should be built with “end use” in mind-not
“how th d t will b stored”.
“h the data ill be t d”
Based on Marketing programs the end users
will run.
ill
Should provide ability to track response and
provide ROI measurement

33. Building a Marketing
database
Create a customized database
Extract data from source systems and build a
–
customer centric data mart
Do data transformations and create a customer
–
analytic record which will drive all analytics
Develop data preparation utilities and data
–
models for segmentation and predictive analytics

34. Marketing Database ETL Framework
DM
Business
Bi
Files
Operations
Systems
Contact
History Transaction
Update Update
Analytic
Models
Phone
& Phone
Customer
Customer DB’s
Scoring
Contact
Hygiene
Marketing
Database
Data Customer
Enrichment Matching
Purchased
Data
Response
p Data
Determination Consolidation
Householding
Audience
Rules
Response
Rules

35. Best practice 4:Change
management

36. Create a framework for
Change management
Plan for Change Management
Do
D not underestimate change management
t d ti th t
Get in experienced consultants,who understand
–
business & technology
Drive changes in structure and incentives
–
Business and Campaign target alignment
–
Change management can cost 3 to 4 times more than Technology
investments

37. Best practice 5: Convince top
management

38. Convince Top management
Get top management buy-in
Obtain t
Obt i top management buy i f Customer
tb in for C t
segmentation
– a profitability based framework to plan
campaigns
Get your CFO on your side
Getting top management support for Funding
Selling to the CFO by establishing clear ROI
–
framework

39. Best practice 6: Think of
Marketing as a Process

40. Think of Marketing as a
Process
Think Process efficiency
Rigorous Campaign process
Planning,development,execution(six sigma)
–
Environment will change-build “privacy
–
views” into your process

41. Best practice 7: Understand
Technology

42. Understand the Technology
agenda
Get your team to understand
technology
Technology will enable customer
centricity
understanding the language of IT folk
–
Use Technology to help you to make
the “data talk”

43. Best practice 8: Change the
Talent mix in marketing

44. Create new capabilities
Change talent mix in your marketing
team
A mix of Left & Right brain skills
understanding customer behavior needs
d t di t bh i d
–
analytical skills (audience knowledge more
than media)
Taking action needs a mix of technology and
–
creative skills

46. Partnering enterprises to optimize
marketing performance

47. Value extraction from CRM
technology takes time
4 A robust solution creates value by
Bring the right skill bringing together the right skill sets
sets into play needed
Turning data to $$ requires a Business &
1-to-1
to-
variety of skill sets Marketing
Marketing
Strategy
Business & Marketing Strategy
Programs
Return
s (Rs)
CRM & Data warehousing
1-to-1 Marketing Programs
CRM & Data
warehousing
Takes 3 to 5 years to put data and infrastructure foundation in place and even longer
to develop human capabilities, a fact-based culture and “success stories”

48. How will Cequity make a difference?
Tools
Actionable Analytics
Process
P
Smart Campaigning
Third-party
Event driven marketing creative Services
end-to-end
end to end People
support
integrated solution
Cequity will accelerate ROI from the CRM investments thro’ quick
time-to-market strategies, operational support and execution excellence

49. Our Mission
To combine data technology and
data,
build actionable analytical marketing
services to accelerate ROI-driven,
,
real-time customer-engaged marketing.
Contact us at www.cequitysolutions.com

50. Thank You