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Moving Beyond Analytics:Customer Centric Crushes the Silo

Spencer Altman, Head of Business Consulting

What customers do…

One Customer

Single CustomerProfileCoordinated Approach

What we want…

Right content.

Right time.

Right device.

Right channel.

Right location.

Media Company attempts to buy Price Comparison

Source : http://www.sueddeutsche.de/wirtschaft/medienkonzern-pro-sieben-sat-erwaegt-verivox-uebernahme-1.2357147

Controlling your Value Chain – An Insurance Example

Derived from : Michael Porter and Marcel Martschausky

EntertainWant/

Problem Recognition

Information Search

PriceAlternatives Conversion Post-

Purchase

*Source : http://www.zeit.de/2015/15/preisvergleich-check-24-portal/

€100 of an auto policy goes tocheck24*

€80 - €90 to Google*

€10 - €20 to check24*

Insurer

“If I had asked my customers what they wanted, they would have said a faster horse.”

-- Henry Ford

That is a challenge for 2016.

What will you do about it?

What does this mean for: your day-to-day projects? your team structure? your responsibilities? your career?

What does this mean for you?What can Analysts & Managers do about this?

If we are the Price Comparison engine… Decrease Google costs – more

targetted Google spend? Customers for which no Google

should be used? Customers for which an owned

channel can be used? Use media/entertain channel for

lower-cost acquisition and upsells

Single Customer Profile & Identity are Key

Important Aspects of becoming User Centric: User Centric KPIs User Centric Internal Projects User Centric Organisation Change comes from Top-Down;otherwise focus on Small Success Today

Key Marketing KPIs – Digital Analytics KPIs

More new customers

1

More profit:• per customer• per transaction• per visit

2 3

Reduce timebetween transactions

Last TransactionLast Visit

Next TransactionNext Visit

Performance Metric Pyramid

Different Reporting Purposes – Different Reporting

Reporting within OnlineReporting outside Online

Business Goals

Reports: €€€€€€€ Maybe churn /

new customers Impact of Online

on other channels

Reports: How are the €€€€

influenced? Landing Pages? Checkout? Engagement? Etc.?

Move away Product/Campaign Centric towards User Centric

Product/Campaign

What products were bought? How successful was the

campaign?

Who are our customers? What communication is appropriate

for which segment? When? How?

Product X?

Campaign X?

Product Y?

Campaign Y?

Examples : User Centric Marketing and Analytics

Which customers are about to churn?

Which segments of those customers are the most

valuable?

Which users are likely to buy soon?

Which products are they likely to buy?

Which users are we wasting money on?

In which channels?

Entertain

Problem / Need

Info Search

Price Alternatives

Conversion

Post-Purchase

Where in the value chain are each of your users?Maybe there is a different value chain per user for different products/services you offer

Different value chain points for different users means: Different messages At different times On different devices Via different channels

Why does thisnot happen?

KPIs are too often not centered on goal of

business.Projects are too often not

KPI driven.

Successful Customer Relations/Marketing Actions

BusinessGoals

Define Measurement

Communicate/Release

DefineContent/ChannelAnalyse

Define TargetGroup

Act &Optimise

1

2

3

4

5

6

7

CompanyGoals

Project Month 1 Month 2 Month 3New Website R1.2                        Requirements                        Design                        Build                        Test                        Release                        Seasonal Campaign                        Requirements                        Test                        Report                        New Product Tool                        Requirements                        Design                        Build                        Test                        Release                        

Typical Team Project Calendar

Where is time to analyse performance of product releases?

Where is time to optimise campaigns?

We often program manage in sub-

optimal performance

Typical Team Project Calendar

Program manage in optimal performance

Project Month 1 Month 2 Month 3New Website R1.2                        Requirements                        Design                        Build                        Test                        Release                        Analyse/Report                        Optimise                        Seasonal Campaign                        Requirements                        Test                        Analyse/Report                        Optimise                        

Your goal is to help your company make

money.

Your means are via products, tools and

campaigns.

Do not confuse the means and the ends.

How to organise the systems? Single User Profile Approach to Data

Data Warehouse

CRM / Personalisation

Engine

Digital toenrich models

Often Already in CustomerIntelligence Models

Help Your CRM/Customer Intelligence…

SingleCustomer

View

Help Your CRM/Customer Intelligence achieve…

Example Traditional Organisational Structure

CEO

CFO COO

Category Managers

CIO CMO

Digital Marketing

Analytics Channels

Display

AdWords

Social

Affiliate

Retargetting

XX Total Channels

SEO Creative/ UX Mobile

Web Apps

iOS Phone

iOS iPad

Android

CRM

Data Mining

Email

Customer Database

Customer Relations

Offline Marketing

Market Research

CI / BI / CRMDigital / AnalyticsMarketing

Your Internal Triangle to Success with DataMarketing has Channels to the

Customers Knows how to talk

to customers Segmentation

models

Marketing is missing Crucial (digital) data

CI / BI / CRM has Most customer data Knows how to work

with Big Data Segmentation

models

CI / BI / CRM is missing Crucial (digital) data

Digital/Analytics has Crucial Digital Data Knows how to work

with Digital Data

Requirements/Implement/Reporting

Customer Focused Analysis

Customer Contact/ Delivery

Example: Customer Experience Focused Organisation Matrix

Traditional Store / Branches

Business Goals

Call Center

Offline Marketing

Digital

Other

What happens to your job when all data is in the

Data Warehouse?

What happens to your job when CI/BI is doing

your reporting?

New positions that do not really exist yet

Cross-Functional skills are key

Very good generalists

Specific expertise unlikely

Think Decathlete :Very good at 10 events. Best in world at none of them. You can likely push

for this in your company to make it happen

What is the future of a Web Analyst?

Marketing

Digital / Analytics

BI / CI / CRM

Existing specialties On-site

optimization Conversion

Specialists Testing SEO Other

Focus on silo’d Digital performance

Deep, specific expertise required

Think Sprinter / Marathoner:

More focus on one skill set

Who will make these changes happen?

Best Chance for Success via Single

User Profile:Change comes from

Top-Down

Bottom-Up:You can still make something happen

What you can dotoday…

Shop your success up the organisation

Demonstrate success with minimal resources

Engage with the ‚other‘ team (CRM/BI/CI if you are Digital/Analytics or vice versa)

Kickoff a small manual business case

Business CaseBank : New Account Signup Process

Online and Offline Combo

Customer Prints Product

Form

Day 0Customer Submits

Form/Signs Up for Product

On average 6 weeks later

Were these thesame person?

Business Case

Customer Prints Product

Form

Day 0Customer Submits

Form/Signs Up for Product

On average 6 2 WeeksCI team arranged email to all customers who had not returned PDF within 1 week

Analytics team created CSV file of all customers who downloaded the PDF

Results : More account signups Decrease time to open account First revenue transactions quicker Improve profit by eliminating

unnecessary emails/letters to untargeted distribution list

Go for it!

It will be ok!Source : iStock

Thank you !

Spencer Altman spencer.altman@webtrekk.com @spenceraltman Head of Business Consulting Berlin, Germany