Category Archives: CMO
This blog post initially appeared on CMSwire.com and is reblogged here with their consent.
Friends of mine were remodeling their master bath. After searching for a claw foot tub in stores and online, they found the perfect one that fit their space. It was only available for purchase on the retailer’s e-commerce site, they bought it online.
When it arrived, the tub was too big. The dimensions online were incorrect. They went to return it to the closest store, but were told they couldn’t — because it was purchased online, they had to ship it back.
The retailer didn’t have a total customer relationship view or a single view of product information or inventory across channels and touch points. This left the customer representative working with a system that was a silo of limited information. She didn’t have access to a rich customer profile. She didn’t know that Joe and his wife spent almost $10,000 with the brand in the last year. She couldn’t see the products they bought online and in stores. Without this information, she couldn’t deliver a great customer experience.
It was a terrible customer experience. My friends share it with everyone who asks about their remodel. They name the retailer when they tell the story. And, they don’t shop there anymore. This terrible customer experience is negatively impacting the retailer’s revenue and brand reputation.
Bad customer experiences happen a lot. Companies in the US lose an estimated $83 billion each year due to defections and abandoned purchases as a direct result of a poor experience, according to a Datamonitor/Ovum report.
Customer Experience is the New Marketing
Gartner believes that by 2016, companies will compete primarily on the customer experiences they deliver. So who should own customer experience?
Twenty-five percent of CMOs say that their CEOs expect them to lead customer experience. What’s their definition of customer experience? “The practice of centralizing customer data in an effort to provide customers with the best possible interactions with every part of the company, from marketing to sales and even finance.”
Mercedes Benz USA President and CEO, Steve Cannon said, “Customer experience is the new marketing.”
The Gap Between Customer Expectations + Your Ability to Deliver
My previous post, 3 Barriers to Delivering Omnichannel Experiences, explained how omnichannel is all about seeing your business through the eyes of your customer. Customers don’t think in terms of channels and touch points, they just expect a seamless, integrated and consistent customer experience. It’s one brand to the customer. But there’s a gap between customer expectations and what most businesses can deliver today.
Most companies who sell through multiple channels operate in silos. They are channel-centric rather than customer-centric. This business model doesn’t empower employees to deliver seamless, integrated and consistent customer experiences across channels and touch points. Different leaders manage each channel and are held accountable to their own P&L. In most cases, there’s no incentive for leaders to collaborate.
Old Navy’s CMO, Ivan Wicksteed got it right when he said,
“Seventy percent of searches for Old Navy are on a mobile device. Consumers look at the product online and often want to touch it in the store. The end goal is not to get them to buy in the store. The end goal is to get them to buy.”
The end goal is what incentives should be based on.
Executives at most organizations I’ve spoken with admit they are at the very beginning stages of their journey to becoming omnichannel retailers. They recognize that empowering employees with a total customer relationship view and a single view of product information and inventory across channels are critical success factors.
Becoming an omnichannel business is not an easy transition. It forces executives to rethink their definition of customer-centricity and whether their business model supports it. “Now that we need to deliver seamless, integrated and consistent customer experiences across channels and touch points, we realized we’re not as customer-centric as we thought we were,” admitted an SVP of marketing at a financial services company.
You Have to Transform Your Business
“We’re going through a transformation to empower our employees to deliver great customer experiences at every stage of the customer journey,” said Chris Brogan, SVP of Strategy and Analytics at Hyatt Hotels & Resorts. “Our competitive differentiation comes from knowing our customers better than our competitors. We manage our customer data like a strategic asset so we can use that information to serve customers better and build loyalty for our brand.”
Hyatt uses data integration, data quality and master data management (MDM) technology to connect the numerous applications that contain fragmented customer data including sales, marketing, e-commerce, customer service and finance. It brings the core customer profiles together into a single, trusted location, where they are continually managed. Now its customer profiles are clean, de-duplicated, enriched and validated. Members of a household as well as the connections between corporate hierarchies are now visible. Business and analytics applications are fueled with this clean, consistent and connected information so customer-facing teams can do their jobs more effectively.
When he first joined Hyatt, Brogan did a search for his name in the central customer database and found 13 different versions of himself. This included the single Chris Brogan who lived across the street from Wrigley Field with his buddies in his 20s and the Chris Brogan who lives in the suburbs with his wife and two children. “I can guarantee those two guys want something very different from a hotel stay,” he joked. Those guest profiles have now been successfully consolidated.
According to Brogan,
“Successful marketing, sales and customer experience initiatives need to be built on a solid customer data foundation. It’s much harder to execute effectively and continually improve if your customer data is a mess.”
Improving How You Manage, Use and Analyze Data is More Important Than Ever
Some companies lack a single view of product information across channels and touch points. About 60 percent of retail managers believe that shoppers are better connected to product information than in-store associates. That’s a problem. The same challenges exist for product information as customer information. How many different systems contain valuable product information?
Harrods overcame this challenge. The retailer has a strategic initiative to transform from a single iconic store to an omnichannel business. In the past, Harrods’ merchants managed information for about 500,000 products for the store point of sale system and a few catalogs. Now they are using product information management technology (PIM) to effectively manage and merchandise 1.7 million products in the store and online.
Because they are managing product information centrally, they can fuel the ERP system and e-commerce platform with full, searchable multimedia product information. Harrods has also reduced the time it takes to introduce new products and generate revenue from them. In less than one hour, buyers complete the process from sourcing to market readiness.
It Ends with Satisfied Customers
By 2016, you will need to be ready to compete primarily on the customer experiences you deliver across channels and touch points. This means really knowing who your customers are so you can serve them better. Many businesses will transform from a channel-centric business model to a truly customer-centric business model. They will no longer tolerate messy data. They will recognize the importance of arming marketing, sales, e-commerce and customer service teams with the clean, consistent and connected customer, product and inventory information they need to deliver seamless, integrated and consistent experiences across touch points. And all of us will be more satisfied customers.
From marketing automation to analytics software, there were countless technology offerings showcasing how to best assist the modern marketer in making every customer interaction personal. Throughout the week, I had numerous conversations with retail professionals about the importance of personalization in marketing and what it means to their organization’s future plans.
At the heart of their plans was the need to understand the data that they have today, and how to verify the data that they will inevitably acquire in the future. If it’s accurate, if it’s reliable, if it’s complete – customer data can fuel your ability to engage and interact.
The data driven marketer derives insight and ultimately provides a personalized experience by leveraging this valuable data for each customer.
And why is this important?
Well, according to McMurrayTMG, 78% of buyers believe that organizations providing a personalized experience are interested in building good relationships. But it all starts with accurate data.
Knowing who your customers are, how you can contact them, and what they are interested in are essential in order to engage with your customers. With the abundance of data available today, you have to figure that if you aren’t ensuring that your customer interactions are personalized, then your competitors are gaining ground. Every interaction, every correspondence counts towards a positive perception as well as increased sales and customer satisfaction.
By fueling your interactions with Data as a Service (DaaS) for accurate customer data, you will ensure that your customers have a personalized experience with your brand and ultimately accelerate your business.
A friend of mine recently reached out to me about some advice on CRM solutions in the market. Though I have not worked for a CRM vendor, I’ve had both direct experience working for companies that implemented such solutions to my current role interacting with large and small organizations regarding their data requirements to support ongoing application investments across industries. As we spoke, memories started to surface when he and I had worked on implementing Salesforce.com (SFDC) many years ago. Memories that we wanted to forget but important to call out given his new situation.
We worked together for a large mortgage lending software vendor selling loan origination solutions to brokers and small lenders mainly through email and snail mail based marketing. He was responsible for Marketing Operations, and I ran Product Marketing. The company looked at Salesforce.com to help streamline our sales operations and improve how we marketed and serviced our customers. The existing CRM system was from the early 90’s and though it did what the company needed it to do, it was heavily customized, costly to operate, and served its life. It was time to upgrade, to help grow the business, improve business productivity, and enhance customer relationships.
After 90 days of rolling out SFDC, we ran into some old familiar problems across the business. Sales reps continued to struggle in knowing who was a current customer using our software, marketing managers could not create quality mailing lists for prospecting purposes, and call center reps were not able to tell if the person on the other end was a customer or prospect. Everyone wondered why this was happening given we adopted the best CRM solution in the market. You can imagine the heartburn and ulcers we all had after making such a huge investment in our new CRM solution. C-Level executives were questioning our decisions and blaming the applications. The truth was, the issues were not related to SFDC but the data that we had migrated into the system and the lack proper governance and a capable information architecture to support the required data management integration between systems that caused these significant headaches.
During the implementation phase, IT imported our entire customer database of 200K+ unique customer entities from the old system to SFDC. Unfortunately, the mortgage industry was very transient and on average there were roughly 55K licenses mortgage brokers and lenders in the market and because no one ever validated the accuracy of who was really a customer vs. someone who had ever bought out product, we had a serious data quality issues including:
- Trial users who purchased evaluation copies of our products that expired were tagged as current customers
- Duplicate records caused by manual data entry errors consisting of companies with similar but entered slightly differently with the same business address were tagged as unique customers
- Subsidiaries of parent companies in different parts of the country that were tagged again as a unique customer.
- Lastly, we imported the marketing contact database of prospects which were incorrectly accounted for as a customer in the new system
We also failed to integrate real-time purchasing data and information from our procurement systems for sales and support to handle customer requests. Instead of integrating that data in real-time with proper technology, IT had manually loaded these records at the end of the week via FTP resulting in incorrect billing information, statement processing, and a ton of complaints from customers through our call center. The price we paid for not paying attention to our data quality and integration requirements before we rolled out Salesforce.com was significant for a company of our size. For example:
- Marketing got hit pretty hard. Each quarter we mailed evaluation copies of new products to our customer database of 200K, each costing the company $12 per to produce and mail. Total cost = $2.4M annually. Because we had such bad data, we would get 60% of our mailings returned because of invalid addresses or wrong contact information. The cost of bad data to marketing = $1.44M annually.
- Next, Sales struggled miserably when trying to upgrade a customer by running cold call campaigns using the names in the database. As a result, sales productivity dropped by 40% and experienced over 35% sales turnover that year. Within a year of using SFDC, our head of sales got let go. Not good!
- Customer support used SFDC to service customers, our average all times were 40 min per service ticket. We had believed that was “business as usual” until we surveyed what reps were spending their time each day and over 50% said it was dealing with billing issues caused by bad contact information in the CRM system.
At the end of our conversation, this was my advice to my friend:
- Conduct a data quality audit of the systems that would interact with the CRM system. Audit how complete your critical master and reference data is including names, addresses, customer ID, etc.
- Do this before you invest in a new CRM system. You may find that much of the challenges faced with your existing applications may be caused by the data gaps vs. the legacy application.
- If they had a data governance program, involve them in the CRM initiative to ensure they understand what your requirements are and see how they can help.
- However, if you do decide to modernize, collaborate and involve your IT teams, especially between your Application Development teams and your Enterprise Architects to ensure all of the best options are considered to handle your data sharing and migration needs.
- Lastly, consult with your technology partners including your new CRM vendor, they may be working with solution providers to help address these data issues as you are probably not the only one in this situation.
CRM systems have come a long way in today’s Big Data and Cloud Era. Many firms are adopting more flexible solutions offered through the Cloud like Salesforce.com, Microsoft Dynamics, and others. Regardless of how old or new, on premise or in the cloud, companies invest in CRM not to just serve their sales teams or increase marketing conversion rates, but to improve your business relationship with your customers. Period! It’s about ensuring you have data in these systems that is trustworthy, complete, up to date, and actionable to improve customer service and help drive sales of new products and services to increase wallet share. So how to do you maximize your business potential from these critical business applications?
Whether you are adopting your first CRM solution or upgrading an existing one, keep in mind that Customer Relationship Management is a business strategy, not just a software purchase. It’s also about having a sound and capable data management and governance strategy supported by people, processes, and technology to ensure you can:
- Access and migrate data from old to new avoiding develop cost overruns and project delays.
- Identify, detect, and distribute transactional and reference data from existing systems into your front line business application in real-time!
- Manage data quality errors including duplicate records, invalid names and contact information due to proper data governance and proactive data quality monitoring and measurement during and after deployment
- Govern and share authoritative master records of customer, contact, product, and other master data between systems in a trusted manner.
Will your data be ready for your new CRM investments? To learn more:
- Download Salesforce Integration for Dummies
- Download a new Whitepaper on how to Maximize Integration ROI with a Hybrid Approach
- Consolidating Multiple Salesforce Orgs: A Best Practice Guide
- Sign up for a 30 Day Trial of Informatica Cloud Integration
Follow me on Twitter @DataisGR8
Marketers, Are You Ready? The Impending Data Explosion from the New Gizmos and Gadgets Unveiled at CES
This is the first year in a very long time that I wasn’t in Las Vegas during CES. Although it’s not quite as exciting as actually being there, I love that the Twitter-verse and industry news sites kept us all up to date about the latest and greatest announcements. Now that CES2015 is all wrapped up, I find myself thinking about the potential of some very interesting announcements – from the wild to the wonderful to the leave-you-wondering! What strikes me isn’t how useful these new gizmos and gadgets will likely be to myself and my consumer counterparts, but instead what incredible new data sources they will offer to my fellow marketers.
One thing is for sure… the connected “Internet of Things” is indeed here. It’s no longer just a vision. Sure, we’re just seeing the early stages, but it’s becoming more and more main stream by the day. And as marketers, we have so much opportunity ahead of us!
I ran across an interesting video interview on the CES show floor with Jack Smith from GroupM on Adweek.com. Jack says that “data from sensors will have a bigger impact, longer term, than the Internet itself.” That is a lofty statement, and I’m not sure I’ll go quite that far yet, but I absolutely agree with his premise… this new world of connectivity is already shifting marketing, and it will almost certainly radically change the way we market in the near future.
Riding the Data Explosion (Literally)
The Connected Cycle is one of the announcements that I find intriguing as a marketer. In short, it’s a bike pedal equipped with GPS and GPRS sensors that “monitor your movements and act as a basic fitness tracker.” It’s being positioned as a way to track stolen bicycles, which is a massive problem in Europe particularly, with the side benefit of being a powerful fitness tracker. It may not be as sexy as some other announcements, but I think there is buried treasure in devices like these.
Imagine how powerful that data would be to a sporting goods retailer? What if the rider of that bicycle had opted into a program that allowed the retailer to track their activity in exchange for highly targeted offers?
Let’s say that the rider is nearing one of your stores and it’s a colder than usual day. Perhaps you could push them an offer to their smart phone for some neoprene booties. Or let’s say that, based on their activity patterns, the rider appears to be stepping up their activity and is riding more frequently suggesting they may be ready for a race you are sponsoring in a few months in the area. Perhaps you could push them an inspirational message saying how great they’re progressing and had they thought about signing up for the big race, with a special incentive of course.
The segmentation possibilities are endless, and the analytics that could be done on the data leaves the data-driven marketer salivating!
Home Automation Meets Business Automation
There were numerous announcements about the connected “house of the future”, and it’s clear that we are just beginning of the home automation wave. Several of the big dogs like Samsung, Google, and Apple are building or buying automation hub platforms, so it’s going to be easier and easier to connect appliances and other home devices to one another, and also to mobile technology and wearables. As marketers, there is incredible potential to really tap into this. Imagine the possibility of interconnecting your customers’ home automation systems with your own marketing automation systems? Marketers will soon be able literally serve up offers based upon things that are occurring in the home in real time.
Oh no, your teenage son finished off all but the last drop of milk (and put the almost-empty jug back in the fridge without a second thought)! Not to worry, you’ve linked your refrigerator’s sensor data with your favorite grocery store. An alert is sent asking if you want more milk, and oh by the way, your shopping patterns indicate you may be running out of your son’s favorite cereal too, so it offers you a special discount if you add a box to your order. Oh yeah, of course he was complaining about being out just yesterday! And whala, a gallon of milk and some Cinnamon Toast Crunch magically arrives at your door by the end of the day. Heck, it will probably arrive within an hour via a drone if Amazon has anything to say about it! No manual business processes whatsoever. It’s your appliance’s sensors talking to your customer data warehouse, which is talking to your marketing automation system, which is talking to a mobile app, which is talking to an ordering system, which is talking to a payment system, which is talking to a logistics/delivery system. That is, of course, if your internal processes are ready!
Some of the More Weird and Wacky, But There May Just Be Something…
Panasonic’s Smart Mirror allows you to analyze your skin and allows you to visualize yourself with different makeup or even a different haircut. Cosmetics and hair care companies should be all over this. Imagine the possibilities of visualizing yourself looking absolutely stunning – if only virtually – with perfect makeup and hair. Who wouldn’t want to rush right out and capture the look for real? What if a store front could virtually put the passer-byer in their products, and once the customer is inside the store, point them to the products that were featured? Take it a step further and send them a special offer the next week to come back buy the hat that just goes perfectly with the rest of the outfit. It all sounds a little bit “Minority Report-esque”, but it’s closer to becoming true every day. The power of the interconnected world is endless for the marketer.
And then there’s Belty… it’s definitely garnered a lot of news (and snarky comments too!). Belty is a smart belt that slims or expands based upon your waist size at that very moment – whether you’re sitting, standing, or just had a too-large meal. I don’t see Belty taking off, but you never know! If it does however, can’t you just see Belty sending a message to your Weight Watchers app about needing to get back on diet? Or better yet, pointing you to the Half Yearly Sale at Nordstrom because you’re getting too skinny for your pants?
The “Internet of Things” is Becoming Reality… Is Your Marketing Team Ready?
The internet of things is already changing the way consumers live, and it’s beginning to change the way marketers market. With the It is critical that marketers are thinking about how they can leverage the new devices and the data they provide. Connecting the dots between devices can become a marketer’s best friend (if they’re ready), or worst enemy (if they’re not).
Are you ready? Ask yourself these 6 questions:
- Are your existing business applications connected to one another? Do your marketing systems “talk” to your finance systems and your sales systems and your customer support systems?
- Do you have fist-class data quality and validation technology and practices in place? Real-time, automated processes will only amplify data quality problems.
- Can you connect easily to any new data source as it becomes available, no matter where it lives and no matter what format it is in? The only constant in this new world is the speed of change, so if you’re not building processes and leveraging technologies that can keep up, you’re already missing the boat!
- Are you building real time capabilities into your processes and technologies? You systems are going to have to handle real-time sensor data, and make real-time decisions based on the data they provide.
- Are your marketing analytics capabilities leading the pack or just getting out of the gate? Are they harnessing all of the rich data available within your organization today? Are you ready to analyze all of the new data sources to determine trends and segment for maximum effect?
- Are you talking to your counterparts in IT, logistics, finance, etc. about the business processes and technologies you are going to need to harness the data that the interconnected world of today, and of the near future? If not, don’t wait! Begin that conversation ASAP!
Informatica is ready to help you embark on this new and exciting data journey. For some additional perspectives from Informatica on the technologies announced at CES2015, I encourage you to read some of my colleagues’ recent blog posts:
62% of global consumers switched service providers due to poor customer service experiences (Accenture Global Consumer Pulse Survey)
Issues with keeping everyone happy have been around since the beginning of trade and as trading has evolved, the underlying rule remains the same – keep the customers happy! Retailers who move beyond just selling to the customer and focus on creating the shopping experience customers want will see higher retention rates and increased spend per shopper.
Other factors like good quality of the products and competitive pricing play a huge role as well but taking care of the consumer is even more important. At the end of the day, shoppers have more options and opportunities to purchase from your competitors.
While multi-channel commerce has gown, many people are shopping not because they really need the products but because they like the experience of shopping. The better the experience is (which includes an amazing customer service) the more likely it is that the customer will come back and make a purchase in store or online. However, if they run into issues with the retailer, not only will they complain and never come back but they will tell their friends, damaging your brand and hurting the bottom line.
News of bad customer service reaches more than twice as many ears as praise for a good service experience. (Help Scout)
Today retailers realize the importance of great customer service and that’s why they train their staff to be friendly and helpful to the customers at all times. Studies have shown that people are reacting very positively to this kind of treatment and not only are they more willing to spend more money but also remain a customer a long a time.
People want to be treated right but they also want to feel important. That’s why retail businesses nowadays go an extra step and use technology and access more data like past purchases, preferences and trends to enhance the customer experience. Even if a customer had a bad experience smart retailers are leveraging customer insights to turn any bad situation around fast. Customer service representatives can responsive to any situation with all the information they need in real time or a highly personalize offer can be delivered to their smartphone.
A 5% increase in customer retention produces more than a 25% increase in profit. (Bain & Co.)
Retailers also have access to different social channels where they can influence and respond to what their customers are saying about their services and products and can use this instant feedback to make changes quickly and precisely.
In today’s world retail businesses have a great advantage compared to the ones that were operating even 5-10 years ago and if they are prompt in addressing concerns they can minimize the negative affect on their operations very easily. Each satisfied customer is not only going to spend money but they are going to advocate for the retailer which is a very powerful thing in business in the long run.
That’s why today successful retail businesses are turning data into insight to make sure that any problems and concerns are addressed promptly and efficiently, and deliver the experience customers desire.
As we renew or reinvent ourselves for 2015, I wanted to share a case of “imagine if” with you and combine it with the narrative of an American frontier town out West, trying to find a new Sheriff – a Wyatt Earp. In this case the town is a legacy European communications firm and Wyatt and his brothers are the new managers – the change agents.
Here is a positive word upfront. This operator has had some success in rolling outs broadband internet and IPTV products to residential and business clients to replace its dwindling copper install base. But they are behind the curve on the wireless penetration side due to the number of smaller, agile MVNOs and two other multi-national operators with a high density of brick-and-mortar stores, excellent brand recognition and support infrastructure. Having more than a handful of brands certainly did not make this any easier for our CSP. To make matters even more challenging, price pressure is increasingly squeezing all operators in this market. The ones able to offset the high-cost Capex for spectrum acquisitions and upgrades with lower-cost Opex for running the network and maximizing subscriber profitability, will set themselves up for success (see one of my earlier posts around the same phenomenon in banking).
Not only did they run every single brand on a separate CRM and billing application (including all the various operational and analytical packages), they also ran nearly every customer-facing-service (CFS) within a brand the same dysfunctional way. In the end, they had over 60 CRM and the same number of billing applications across all copper, fiber, IPTV, SIM-only, mobile residential and business brands. Granted, this may be a quite excessive example; but nevertheless, it is relevant for many other legacy operators.
As a consequence, their projections indicate they incur over €600,000 annually in maintaining duplicate customer records (ignoring duplicate base product/offer records for now) due to excessive hardware, software and IT operations. Moreover, they have to stomach about the same amount for ongoing data quality efforts in IT and the business areas across their broadband and multi-play service segments.
Here are some more consequences they projected:
- €18.3 million in call center productivity improvement
- €790,000 improvement in profit due to reduced churn
- €2.3 million reduction in customer acquisition cost
- And if you include the fixing of duplicate and conflicting product information, add another €7.3 million in profit via billing error and discount reduction (which is inline with our findings from a prior telco engagement)
Despite major business areas not having contributed to the investigation and improvements being often on the conservative side, they projected a 14:1 return ratio between overall benefit amount and total project cost.
Coming back to the “imagine if” aspect now, one would ask how this behemoth of an organization can be fixed. Well, it will take years but without management (in this case new managers busting through the door), this organization has the chance to become the next Rocky Mountain mining ghost town.
The good news is that this operator is seeing some management changes now. The new folks have a clear understanding that business-as-usual won’t do going forward and that centralization of customer insight (which includes some data elements) has its distinct advantages. They will tackle new customer analytics, order management, operational data integration (network) and next-best-action use cases incrementally. They know they are in the data, not just the communication business. They realize they have to show a rapid succession of quick wins rather than make the organization wait a year or more for first results. They have fairly humble initial requirements to get going as a result.
You can equate this to the new Sheriff not going after the whole organization of the three, corrupt cattle barons, but just the foreman of one of them for starters. With little cost involved, the Sheriff acquires some first-hand knowledge plus he sends a message, which will likely persuade others to be more cooperative going forward.
What do you think? Is new management the only way to implement drastic changes around customer experience, profitability or at least understanding?
Happy Holidays, Happy HoliData
In case you have missed our #HappyHoliData series on Twitter and LinkedIn, I decided to provide a short summary of best practices which are unleashing information potential. Simply scroll and click on the case study which is relevant for you and your business. The series touches on different industries and use cases. But all have one thing in common: All consider information quality as key value to their business to deliver the right services or products to the right customer.
Thanks a lot to all my great teammates, who made this series happen.
Happy Holidays, Happy HoliData.
The other day I ran across an article on CMO.com from a few months ago entitled “Total Customer Value Trumps Simple Loyalty in Digital World”. It’s a great article, so I encourage you to go take a look, but the basic premise is that loyalty does not necessarily equal value in today’s complicated consumer environment.
Customers can be loyal for a variety of reasons as the author Samuel Greengard points out. One of which may be that they are stuck with a certain product or service because they believe there is no better alternative available. I know I can relate to this after a recent series of less-than-pleasant experiences with my bank. I’d like to change banks, but frankly they’re all about the same and it just isn’t worth the hassle. Therefore, I’m loyal to my unnamed bank, but definitely not an advocate.
The proverbial big fish in today’s digital world, according to the author, are customers who truly identify with the brand and who will buy the company’s products eagerly, even when viable alternatives exist. These are the customers who sing the brand’s praises to their friends and family online and in person. These are the customers who write reviews on Amazon and give your product 5 stars. These are the customers who will pay markedly more just because it sports your logo. And these are the customers whose voices hold weight with their peers because they are knowledgeable and passionate about the product. I’m sure we all have a brand or two that we’re truly passionate about.
Total Customer Value in the Pool
My 13 year old son is a competitive swimmer and will only use Speedo goggles – ever – hands down – no matter what. He wears Speedo t-shirts to show his support. He talks about how great his goggles are and encourages his teammates to try on his personal pair to show them how much better they are. He is a leader on his team, so when newbies come in and see him wearing these goggles and singing their praises, and finishing first, his advocacy holds weight. I’m sure we have owned well over 30 pair of Speedo goggles over the past 4 years at $20 a pop – and add in the T-Shirts and of course swimsuits – we probably have a historical value of over $1000 and a potential lifetime value of tens of thousands (ridiculous I know!). But if you add in the influence he’s had over others, his value is tremendously more – at least 5X.
This is why data is king!
I couldn’t agree more that total customer value, or even total partner or total supplier value, is absolutely the right approach, and is a much better indicator of value. But in this digital world of incredible data volumes and disparate data sources & systems, how can you really know what a customer’s value is?
The marketing applications you probably already use are great – there are so many great automation, web analytics, and CRM systems around. But what fuels these applications? Your data.
Most marketers think that data is the stuff that applications generate or consume. As if all data is pretty much the same. In truth, data is a raw ingredient. Data-driven marketers don’t just manage their marketing applications, they actively manage their data as a strategic asset.
How are you using data to analyze and identify your influential customers? Can you tell that a customer bought their fourth product from your website, and then promptly tweeted about the great deal they got on it? Even more interesting, can you tell that that five of their friends followed the link, 1 bought the same item, 1 looked at it but ended up buying a similar item, and 1 put it in their cart but didn’t buy it because it was cheaper on another website? And more importantly, how can you keep this person engaged so they continue their brand preference – so somebody else with a similar brand and product doesn’t swoop in and do it first? And the ultimate question… how can you scale this so that you’re doing this automatically within your marketing processes, with confidence, every time?
All marketers need to understand their data – what exists in your information ecosystem , whether it be internally or externally. Can you even get to the systems that hold the richest data? Do you leverage your internal customer support/call center records? Is your billing /financial system utilized as a key location for customer data? And the elephant in the room… can you incorporate the invaluable social media data that is ripe for marketers to leverage as an automated component of their marketing campaigns?
This is why marketers need to care about data integration…
Even if you do have access to all of the rich customer data that exists within and outside of your firewalls, how can you make sense of it? How can you pull it together to truly understand your customers… what they really buy, who they associate with, and who they influence. If you don’t, then you’re leaving dollars, and more importantly, potential advocacy and true customer value, on the table.
This is why marketers need to care about achieving a total view of their customers and prospects…
And none of this matters if the data you are leveraging is plain incorrect or incomplete. How often have you seen some analysis on an important topic, had that gut feeling that something must be wrong, and questioned the data that was used to pull the report? The obvious data quality errors are really only the tip of the iceberg. Most of the data quality issues that marketers face are either not glaringly obvious enough to catch and correct on the spot, or are baked into an automated process that nobody has the opportunity to catch. Making decisions based upon flawed data inevitably leads to poor decisions.
This is why marketers need to care about data quality.
So, as the article points out, don’t just look at loyalty, look at total customer value. But realize, that this is easier said than done without a focusing in on your data and ensuring you have all of the right data, at the right place, in the right format, right away.
Now… Brand advocates, step up! Share with us your favorite story. What brands do you love? Why? What makes you so loyal?
Citrix: You may not realize you know them, but chances are pretty good that you do. And chances are also good that we marketers can learn something about achieving fortune teller-like marketing from them!
Citrix is the company that brought you GoToMeeting and a whole host of other mobile workspace solutions that provide virtualization, networking and cloud services. Their goal is to give their 100 million users in 260,000 organizations across the globe “new ways to work better with seamless and secure access to the apps, files and services they need on any device, wherever they go.”
Citrix is a company that has been imagining and innovating for over 25 years, and over that time, has seen a complete transformation in their market – virtual solutions and cloud services didn’t even exist when they were founded. Now it’s the backbone of their business. Their corporate video proudly states that the only constant in this world is change, and that they strive to embrace the “yet to be discovered.”
Having worked with them quite a bit over the past few years, we have seen first-hand how Citrix has demonstrated their ability to embrace change.
Back in 2011, it became clear to Citrix that they had a data problem, and that they would have to make some changes to stay ahead in this hyper competitive market. Sales & Marketing had identified data as their #1 concern – their data was incomplete, inaccurate, and duplicated in their CRM system. And with so many different applications in the organization, it was quite difficult to know which application or data source had the most accurate and up-to-date information. They realized they needed a single source of the truth – one system of reference where all of their global data management practices could be centralized and consistent.
The marketing team realized that they needed to take control of the solution to their data concerns, as their success truly depended upon it. They brought together their IT department and their systems integration partner, Cognizant to determine a course of action. Together they forged an overall data governance strategy which would empower the marketing team to manage data centrally – to be responsible for their own success.
As a key element of that data governance / management strategy, they determined that they needed a Master Data Management (MDM) solution to serve as their Single Trusted Source of Customer & Prospect Data. They did a great deal of research into industry best practices and technology solutions, and decided to select Informatica as their MDM partner. As you can see, Citrix’s environment is not unlike most marketing organizations. The difference is that they are now able to capture and distribute better customer and prospect data to and from these systems to achieve even better results. They are leveraging internal data sources and systems like CRM (Salesforce) and marketing automation (Marketo). Their systems live all over the enterprise, both on premises and in the cloud. And they leverage analytical tools to analyze and dashboard their results.
Citrix strategized and implemented their Single Trusted Source of Customer & Prospect solution in a phased approach throughout 2013 and 2014, and we believe that what they’ve been able to accomplish during that short period of time has been nothing short of phenomenal. Here are the higlights:
- Used Informatica MDM to provide clean, consistent and connected channel partner, customer and prospect data and the relationships between them for use in operational applications (SFDC, BI Reporting and Predictive Analytics)
- Recognized 20% increase in lead-to-opportunity conversion rates
- Realized 20% increase in marketing team’s operational efficiency
- Achieved 50% increase in quality of data at the point of entry, and a 50% reduction in the rate of junk and duplicate data for prospects, existing accounts and contact
- Delivered a better channel partner and customer experience by renewing all of a customers’ user licenses across product lines at one time and making it easy to identify whitespace opportunities to up-sell more user licenses
That is huge! Can you imagine the impact on your own marketing organization of a 20% increase in lead-to-opportunity conversion? Can you imagine the impact of spending 20% less time questioning and manually massaging data to get the information you need? That’s game changing!
Because Citrix now has great data and great resulting insight, they have been able to take the next step and embark on new fortune teller-like marketing strategies. As Citrix’s Dagmar Garcia discussed during a recent webinar, “We monitor implicit and explicit behavior of transactional leads and accounts, and then we leverage these insights and previous behaviors to offer net new offers and campaigns to our customers and prospects… And it’s all based on the quality of data we have within our database.”
I encourage you to take a few minutes to listen to Dagmar discuss Citrix’s project on a recent webinar. In the webinar, she dives deeper into their project, the project scope and timeline, and to what she means by “fortune telling abilities”. Also, take a look at the customer story section of the Informatica.com website for the PDF case study. And, if you’re in the mood to learn more, you can download a complimentary copy of the 2014 Gartner Magic Quadrant for MDM of Customer Data Solutions.
Hat’s off to you Citrix, and we look forward to working with you to continue to change the game even more in the coming months and years!
In our interviews of CIOs, they have told us that connecting what IT is doing to business strategy has become a higher priority than even things like improving technical orchestration and overall process excellence. Being CIO today has become much more about business alignment than technology alignment. This means that CIOs and their teams need to understand their firm’s business problems almost as well as they understand their implementations of information technology. One area where CIOs say they are trying to do a better job of alignment is in working with their firm’s Chief Marketing Officer. Confirming this is a recent CIO Magazine Survey that found initiatives around revenue, customer acquisition, and customer retention receiving top IT priority these days.
Geiger IT solves a persistent business problem by aligning with the marketing team
One CIO that that has really taken this to heart is the Dale Denham who is the CIO at Geiger. Dale and his IT team decided that they needed to get closer to their firm’s marketing organization and by doing so was able to go after a persistent business problem and change the IT-business relationship in the process.
At Geiger, their marketing team was limited in their ability to add new products. Competitively, the marketing team needed to improve their product selection. However, they were hitting the wall in updating and maintaining their product mix. Geiger provides its customers with more than 5,000 products, each having as many as 350 variations. This translates to a 175,000 product permutations to price and manage. At the same time, Geiger sells its products through 500 Sales Partners—this, in turn, can create an additional layer of permutation.
The source of this business problem was that Geiger’s ERP and Website systems that required the users to manipulate multiple screens to get to product data and product codes into the system. The system was difficult enough that it took about six weeks to train someone to input product data. Think about the time needed to then do this this across all products, product permutations, and channel partners.
To fix things, Dale and his team partnered with the business. Doing it together rather than separately enabled the IT organization and the business to collaborate and to build a better and more permanent partnership. Dale says, “We have really enjoyed implementing the solution, because the business units are now working very closely with IT”. Dale claims as well the relationship with their business units has gotten to be a very solid, trusting relationship with them, and very collaborative. They have learned to trust IT’s input, and IT has learned a lot from the business units about how they operate and like to operate.”
The impact of working together is clear
The solution that the business and IT derived cut the time to train people in half. In fact, Dale says that new system users are relatively productive within a week, because the solution is faster and easier to use. Dale says that the time per product entry went down from an hour and half to thirty minutes. For this reason, marketing teams are more efficient. Overall, it reduced the process from two months to one week for them to update the customer facing website. By automating the process, they were able to speed up marketing processes. This means marketing can now add and extend to the existing marketing mix and increase customer satisfaction and potential increase customer upsell and cross sell.
The historical the process created a lot of efficiencies for marketing. Marketing staff is now much more focused on what they’re doing from day to day. They have the ability to update products faster from prices and this has stabilized business margins. At the same time, marketing was able to reduce invoice discrepancies. Given all of this, marketing staff is more engaged that they are able to get the job done in a timely manner and to be able to get to market faster with the products.
The solution took the data entry process down from ninety minutes to thirty minutes. And now with this increased efficiency, the marketing staff has focused more of its time on the quality of copy for the product and on getting the graphics of the images up to websites. This has improved overall customer experience. And of course they were able to expand their product offering. They now have three times the throughput capacity, which is what is going to allow Geiger to grow in the future as it provides more product options to customers.
Already they have found that customers are happier with the immediate larger breadth of product to choose from. Lastly, their leadership team is happier because they are able to get more opportunities to grow the business. And this gives them much more ability to satisfy customers and provide for the additional growth they need in the future.
Clearly business and IT alignment is all the rage today. But it starts and ends with a team that solves meaningful business problems. Geiger is a great of example of how to do this right. If you want to learn more about what Geiger did and how they solved their marketing problems, please click this hyperlink.