Day 1 driving business impact multichannel excerpt

Day 1 - Driving Business Impact through Effective Campaign Management

Seminar Excerpt

GUIDELINES

SESSION OBJECTIVES

CONTENTS

• Introduction and Strategic Overview• Customer Contact Strategies• Solving Key Marketing Challenges • What is a Marketing Database?• The Role of Analytics in Driving Business Success• Creating Winning Campaigns

1. Introduce Concepts in Customer Centric Marketing

2. Introduce Concepts in Data Driven Marketing

3. Introduce Effective Campaign Process

Many topics will be covered at a high levelAddressing issues more relevant to post paidAsk Questions as needed

Objectives, Guidelines & Contents

Learning Objectives

At the end of the session today, participants should be able to do the following:Understand how to align marketing campaigns to the customer.Understand how a portfolio approach can translate business goals into a campaign strategy.Define a contact strategy that respects prospects and prioritizes contacts for the most valuable offers.Utilize analytics to target customers and match offers to segments

Introduction and Strategic Overview

What are we ultimately here to discuss? What is our objective?

Build a customer centric strategy and

execute through multi-channel campaign

management

Leverage the unique dynamics of the pre-

post paid phone business for profitable

growth

ProfitsCustomer LTV*

Network optimization

What is Customer Centricity?

What is Customer-Centricity?

“Customer-centricity is an over-arching philosophy which involves aligning organizational resources for effectively responding to the ever-changing needs of customers, while building mutually profitable relationships.”

- Craig Bailey & Kurt Jensen, Business Consultants

What does Customer Centricity mean to my company?•To optimize the opportunity and value of each prospect and customer, companies must be able to: • Understand and predict current and potential customer needs and behavior

patterns across all channels• Develop and execute plans to interact with customers and prospects in a manner

that delivers:• What they need• When they need it• How they want it

• Fully leverage both inbound and outbound customer touch points to support and deliver the optimal customer experience

• Transform data and analysis into business intelligence• Apply the right staff resources, business process, technology

and data content against the body of work

The Results Tell the Story

Customer-Centric contact strategies produce better results…

• Behavior and Preference-driven communication (3X+ lift)

• Trigger-based optimization (8X+ lift)• Multi-channel optimization (5X+ lift)

From Product to Customer Centric-- Customer Value Landscape --

Product Focus

High

Low

SolutionFocus

Customer Value

Proactively Understand Customer Drivers

Breadth of Offering

Create Customized Solutions

Push

Pull

Anticipate

One

Way

Two W

ay

Custom

er Dialo

gue

Mark

eting A

pproach

Product Focused

Segment Focused

CustomerFocused

IndividualizedMarketing

ChannelIntegrated Convers

e

Customer Centric is the Goal

Source: Booz Allen Hamilton

A New Customer Value Proposition

Industry Traditional Traditional = ValueProduct Proposition

Truck Manufacturing

Trucks “We sell and service trucks”

Aerospace Components

Aerospace Fasteners

“We sell high-performance fasteners”

Utilities Electricity “We provide electricity reliability”

Chemicals Lubricants “We sell a wide range of lubricants”

Pharmaceuticals

Drugs “We sell pharmaceuticals”

Value-Added Customer-Centric+ Services = Value Proposition

Financing Service

“We can help you reduce life-cycle transportation costs”

Application/Design support

“We can reduce your operational costs”

Energy asset maintenance

“We can help you reduce total energy costs”

Usage and application design Lubricant analysis

“We can increase your machine performance and up-time”

Product support Outcomes-driven information database

“We can help you better manage your patient base”

Why Multichannel Marketing and Customer CentricityBest-in-Class Performance Advantage

Source: Aberdeen Group

0% 20% 40% 60% 80% 100%

43%

31%

24%

60%

50%

38%

63%

52%

30%

Return on Marketing Investment

Increase in gross sales/revenues

Customer retention rate

Mark

eti

ng

Metr

ics

% of respondents showing greater than 15% improvementBIC

Industry Norm

Laggard

Self Assessment—Customer Centricity

Do you have a business strategy that looks to build products, sales, and customer service around individual customers?

Do you have a process for combining all operational data around individual customers?

Do you have a marketing strategy that builds on customers, not just individual products?

Do you have strategic segments of customers that can be targeted in your marketing campaigns?

What is Multi-channel Marketing?

Multi-channel Marketing

A systematic approach to deploying many different marketing channels to reach your customer depending on their preferences.

Strategy—Accept that the customer will define a preference for where they get information, you need to be there.

Technology—Requires a campaign automation tool to route information to each channel.

Offers—Offers have to be translated into each of the channels where they are presented.

Contact Strategy—A map of how each prospect and customer will be communicated to over time. It must include business objectives and customer preferences.

Marketing Maturity Roadmap – Multi-Channel MarketingWhere are you in your marketing evolution?

MassMarketing

Target Marketing

RelationshipMarketing

Multi-ChannelMarketing

RelationshipOptimization

Customer Focus

Company Focus

Shared Value Focus

Right Offer For Some

Right Offer, Right Person

Right Offer, Right Person,

Right Time

Right Offer,

Right Person, Right Times,

Right Mix of Channels

Right Value Exchange

Building a Multi-channel Strategy

Channel Attribute to Consider Decision Making

Customer preference Market Research—understand preferred channel for point in sales cycle

Cost per impression Align higher cost impressions with most valuable customers and most valuable transactions

Inbound/outbound messaging Inbound is most effective but requires customer to initiate the contact. Outbound is under your control.

Social channels Should be included in the mix, even if just experimental for now

Define the conversation Be prepared to present the next piece of the conversation at all times.

Multi-channel Marketing Drives Improved Results

Mature practitioners of multichannel marketing are improving tactical results which, in turn, are driving strategic outcomes:

◦ 48% have increased impressions more than 15%.◦ 43% say they've gained more than 15% in customer satisfaction scores.◦ 40% are generating more than a 15% improvement in marketing-attributed

revenues.◦ 24% report a 15% reduction in average sales cycle length.◦ 34% report more than a 15% increase in return on marketing investment.

"The Multichannel Maturity Mandate”Forrester Research – August 2012

Self Assessment

Have you defined specific steps that customers go through as they consider your product, buy your product, and ultimately stay loyal to your product?

Have you tested different marketing activities with regards to moving customers from one step to the next?

Where do you stand on the marketing maturity roadmap? What immediate steps can be taken to move to the next level of maturity?