Over the past decade, the communications industry has faced a massive
paradigm shift as communications services have become commoditized and it has
become increasingly difficult to connect with customers. As a result, today the
competitive playing field is undergoing a shift from companies competing based
on technology to a renewed focus on attracting and retaining their customers.
In this new competitive environment the more a company knows about its
customers, and the more effectively it can operationalize that information, the
more competitive it will be in the marketplace. Unfortunately, most companies
have a long way to go before they can claim victory.
The world’s corporations have spent vast sums collecting, storing and
analyzing huge amounts of customer information in multi-terrabyte data
warehouses. Customer relationship management systems have been deployed across
call centers and public websites to track and manage telephone and online
inquiries, chats and sales. But all too often, this information hasn’t made a
meaningful impact on one organization that could use it most—consumer
marketing.
Marketing has always been viewed as an imprecise and costly “creative art”
that was challenged by the hard and cold numbers that drive most businesses. A
recent Accenture survey of marketing executives in the United States and United Kingdom found that
70 percent have difficulty capturing the attention of consumers with their
marketing campaigns, given the noise and clutter in the marketplace. More than
half (57 percent) said their campaigns are not integrated or even coordinated
with other areas of the company with which customers also interact.
Despite their companies’ sizable investment in sophisticated data
warehouses, one-half the marketers surveyed said they did not have real-time
access to key data residing in pockets around the organization and 53 percent
are not able to quickly transform customer data into usable customer insights.
And a surprising two-thirds (65 percent) said they do not have an integrated
view of customers that could help them create more appropriate marketing
messages for individuals interacting with the company.
But some innovative companies are finding new ways to succeed where others
fail. A new approach known as “insight-driven marketing” is finally helping to
turn this creative art into a management science with a measurable return on
investment. Based on in-depth analysis of customer buying habits, preferences,
income levels and other specific metrics, insight marketing is helping smart
companies identify the trends and interests of their key customers—and then
create effective marketing campaigns that really work.
Today, there are increasingly sophisticated tools for managing customer
relationships that deliver unprecedented insight into the minds and beliefs of
individual consumers—and allow companies to re-think their approach to
marketing to those consumers. And for many, that means faster, more targeted
marketing campaigns, an improved competitive advantage—and a lasting ability to
hold onto that all-important customer.
For instance, Huntington National Bank of Columbus, Ohio, draws data from 17
different sources of customer interaction—including ATMs, tellers, telephones
and the Internet—to help the company paint a more accurate picture of each
customer. All customer transactions are recorded in a customer’s individual
profile, which is updated virtually in real-time, giving employees a simple,
single source for complete customer information.
Another company, the online brokerage house E*Trade, used consumer insight
data to transform itself from a product-oriented company into one that is
insight-driven. One E*Trade system lets employees enter variables to generate
scores that help them predict which customers have the propensity to buy
certain types of products. Unlike typical customer modeling, which can take
several weeks to complete, the E*Trade system provides propensity models in
just two hours—allowing marketers to create new campaigns that take advantage
of fast-moving trends and changing customer interests.
How can companies gain this new level of insight into today’s consumers?
What steps should they take to insure that their hard-won customers aren’t
frustrated by the need to identify themselves and their problem multiple times
only to reach a live agent who asks them to repeat it again! How can companies
focus their attention on their top money-making customers—and make them
customers for life?
First and foremost, take a holistic view of your
customer—and recognize that the value of any given customer may change
over time. College students will have needs that vary considerably from retired
empty-nesters, yet with careful handling and an individualized sales approach,
a single organization can serve both types of consumers equally well. By
recognizing and reacting to the consumer as an individual, a smart, responsive
business may be able to serve that person through their entire life cycle as a
valuable customer.
Break down the barriers within your organization that segment and
categorize customers in only one way—by product or sales level. Having separate
phone numbers for service of different products may seem reasonable to a
telephone company, as it is based on their internal structure—but it makes no
sense to a consumer. For example, when a customer moves into a new residence
and needs to establish voice and data services, although these services will
likely be available from a single provider, the consumer will typically need to
place two separate calls for service orders to establish both voice and data
services. Take the initiative to learn your customer, rather than putting the
burden of understanding your company on them.
Second, turn insight into action. Make sure the systems
are in place to deliver the right information to the right person at the right
time—and restructure your sales and service organizations and processes to
institutionalize customer-focused, insight-driven practices. This may mean
transferring high-value customers out of an interactive voice response (IVR)
system directly to a specially-trained customer service team, while the
majority of customers remain in the automated system. Or it may mean special
concessions or sales offers may be made to high-end customers to keep them from
going somewhere else.
But mostly, it means developing and deploying the processes and practices
that make use of the customer data a business has gathered. Unfortunately, many
companies have access to reams of in-depth customer information, but they
simply don’t know how and where to use it. Volumes of data about customer
buying habits and product preferences could become the basis for valuable
marketing campaigns, but the companies haven’t put into place the systems to
extract, manipulate and then act upon the data.
Finally, build a lasting relationship with each individual
customer. Consumers will often respond appropriately to how a
particular business treats them. If you demonstrate a lack of respect for their
time or feelings (by slow response times or careless service), they’ll try
someone else next time. But if you take the extra initiative to provide a fast,
personalized experience, they’ll view your organization as a concerned partner
who will continue to contribute to and foster a positive relationship.
In an exceedingly competitive marketplace, insight driven marketing has the
potential to alter the landscape. While many companies have the sophisticated
tools to gather customer information, they are not taking full advantage of
that data to achieve real customer intimacy. However, as the competitive
playing field evolves, it will become increasingly important to create robust,
measurable marketing campaigns. Insight driven marketing will form the core of
those programs, helping smart companies achieve continued successes.
About the author: Julie Nelson
is a global managing partner with the Accenture Customer Relationship
Management group.
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