Tag Archives: Customers
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?
- A loss of customer trust
- Revenue shortfalls
- A plummeting stock price
- C-level executives losing their jobs
As a result, Data security and privacy has become a key topic of discussion, not just in IT meetings, but in the media and the boardroom.
Preventing access to sensitive data has become more complex than ever before. There are new potential entry points that IT never previously considered. These new options go beyond typical BYOD user devices like smartphones and tablets. Today’s entry points can be much smaller: Things like HVAC controllers, office polycoms and temperature control systems.
So what can organizations do to combat this increasing complexity? Traditional data security practices focus on securing both the perimeter and the endpoints. However, these practices are clearly no longer working and no longer manageable. Not only is the number and type of devices expanding, but the perimeter itself is no longer present. As companies increasingly outsource, off-shore and move operations to the cloud, it is no longer possible fence the perimeters and to keep intruders out. Because 3rd parties often require some form of access, even trusted user credentials may fall into the hands of malicious intruders.
Data security requires a new approach. It must use policies to follow the data and to protect it, regardless of where it is located and where it moves. Informatica is responding to this need. We are leveraging our market leadership and domain expertise in data management and security. We are defining a new data security offering and category. This week, we unveiled our entry into the Data Security market at our Informatica World conference. Our new security offering, Secure@Source™ will allow enterprises to discover, detect and protect sensitive data.
The first step towards protecting sensitive data is to locate and identify them. So Secure@Source™ first allows you discover where all the sensitive data are located in the enterprise and classify them. As part of the discovery, Secure@source also analyzes where sensitive data is being proliferated, who has access to the data, who are actually accessing them and whether the data is protected or unprotected when accessed. Secure@Source™ leverages Informatica’s PowerCenter repository and lineage technology to perform a first pass, quick discovery with a more in depth analysis and profiling over time. The solution allows you to determine the privacy risk index of your enterprise and slice and dice the analysis based on region, departments, organization hierarchy, as well as data classifications.
The longer term vision of Secure@Source™ will allow you to detect suspicious usage patterns and orchestrate the appropriate data protection method, such as: alerting, blocking, archiving and purging, dynamically masking, persistently masking, encrypting, and/or tokenizing the data. The data protection method will depend on whether the data store is a production or non-production system, and whether you would like to de-identify sensitive data across all users or only for some users. All can be deployed based on policies. Secure@Source™ is intended to be an open framework for aggregating data security analytics and will integrate with key partners to provide a comprehensive visibility and assessment of an enterprise data privacy risk.
Secure@Source™ is targeted for beta at the end of 2014 and general availability in early 2015. Informatica is recruiting a select group of charter customers to drive and provide feedback for the first release. Customers who are interested in being a charter customer should register and send email to SecureCustomers@informatica.com.
At Informatica, we take great delight in the success of our customers. Just today, in spite of the economic downturn, KPN announced that its Q2 revenues increased 22% and raised its outlook for the remainder of the year. To what do they attribute their results? Solid execution and successful integration of acquired companies. Watch the KPN CFO give his take on CNBC.
At our recent customer conference, KPN was the overall winner of the annual Informatica Innovation Awards. They made some strategic investment in Informatica products to achieve their business objectives.
“Informatica products and services have been critical to driving shareholder value through improved customer service. To realize our Strategic Innovation goals, we built our Customer Data Cleansing platform with Informatica; it gives us real-time access and cleansing of our customer data. Our nomination for an Innovation Award signifies an industry acknowledgement of the competitive advantage this project has brought to KPN.”
- Jan Muchez, CIO, KPN
At Informatica, we focus a great deal on how our customers link key business imperatives to the application of data integration and data quality technology. What an excellent example provided by KPN – Congratulations to them on a great quarter!