integration, information and insights: a contextual perspective on customer interactions

Integration, Information and Insights: A Contextual Perspective on Customer Interactions

Igor NesmyanovichPhD, CIISP, Partner and CIO, dthree inc.

Steve VermeirenDirector – CRM and Retention, SIRIUS Satellite Radio

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Presenters

Igor Nesmyanovich; CIO, partner dthree inc, Mississauga, ON

dthree is a leading provider of an enterprise marketing platform that enables customer interactions management in a holistic and contextual fashion.

Steve Vermeiren; Director – CRM and Retention, SIRIUS Satellite Radio, Toronto, ON

SIRIUS is Canada's number one choice for satellite radio with 110 full-time channels broadcast from studios in Vancouver, Toronto, Montreal and New York.


Key Discussion Points

Data integration challenges

Learn about contextual data integration

Gain insights into Sirius Satellite Radio Canada Case study


Definition of Data Integration

“A formal process to combine information from two or more separate data sources, making use of information in the databases for the purpose of accurately estimating certain values that are not available in any single data source.”

ARF (Association of National Advertisers and the American Association of Advertising Agencies)


Data Integration Techniques

Statistical Data Integration

Map known characteristic of one group of individuals onto another group of individuals based on a set of common attributes

Challenges:

Complex process of validation and auditing

Difficult to apply to non demographic data such as behavioral.

CRM Data integration

Data integration on individual Consumer/Customer level

Challenges:

Data semantic, formats and metrics vary from system to system

Quality of data


Contextual Data Integration

Focused on the particular business or marketing strategy

It is about customers and consumers, not channels

Enables Business users to make decisions and act on the information

Decisions and actions can be automated

General Data Integration

Data CollectionContextual Data

IntegrationContextual

Interpretation

Traditional data integration

Contextual data integration

Decisions and actions

Contextual Data Collection

Contextual Data Integration

Contextual Data InterpretationDecisions and Actions


Contextual Data Integration Process

Define contextual integration domain

Define domain metrics and KPI

Define semantic and data models and maps

Optimize data collection

Enable marketing actions

1

2

3

4

5


Define Contextual Integration Domain

Acquiring new customers context

Generating more business from existing customers context

Reducing cost of acquiring context

Identifying and serving the customers that generate the most profit

Improving customer retention rate context

1


Define Domain Metrics and KPIs

Acquiring new customers context

Incremental Sales Revenue, Profit, Market Share, Cost Per Acquisition, Net Promoter Score

Generating more business from existing customers context

Incremental Revenue and Profit per Customer, Share Of Wallet (SOW), Market Basket

Reducing cost of acquiring context

Cost Per Acquisition, Prospect Lifetime Value, Return On Marketing Investment

Identifying and serving the customers that generate the most profit

Customer profit, Customer and Prospect Lifetime Value

Improving customer retention rate context

Retention Rate, Customer Lifetime, Recency, Customer Satisfaction, Retention Cost

2


Define Semantic And Data Models

ProfitRevenue

CLV

New Customers

Prospects

Revenue Per Basket

Conversion Rate

CPM

CPA

Impressions CPC

ROMI

Offer

Relevancy Rules

Retention Rate

3


Optimize Data Collection

Determine target actions based on the business context

Track target action events

Contextual data tagging

Use offline to online contextual tracking codes

Enable data quality monitoring and measure data “trust factor”

4


Optimize Data Collection (Cont.)

Contextual data marts

Contextual reports

Integration structured and unstructured information

Enable collaboration between analysts and decision makers

Less time on report development - more time on data interpretation and analysis

Knowledge Extraction and Analysis

4


Optimize Data Collection (Cont.)

Secure data with Personal Identifiable Information (PII)

Enforce privacy policy

All access to the PII is audited

Explain to consumers what personal data are collected and why, and the benefits

Data Integration And Privacy

4


Enable Marketing Actions

Automated rules based campaigns

Use of static and dynamic rule engines

Event triggered communication

Online media personalization

Multi step and multi channel campaigns: direct, phone, e-mail, web, online media

5


Case Study


Case Study

• Launch Date: Sirius Satellite Radio launched in Canada in December, 2005

• What is Satellite Radio:

• Subscription based radio with…

• uniquely available programming… that is

• digitally delivered by satellite… to both

• mobile and fixed receivers.

• 100% commercial-free music with less DJ chatter, extensive variety, digital sound and deep playlists

• News, Sports, Comedy and Family Entertainment – something for everybody

• Programming availability across Canada and the United States, wherever you may travel

• The ability to use your radio receivers wherever you want: in the car, at home, on your boat…

• Low monthly costs… less than $0.50 a day or less than the cost of a single CD a month!


Building the Vision

Marketing Intelligence Infrastructure

Analytics Planning Evaluation Execution Results

Consideration Acquisition Servicing Cross-SellUpsell

Renewals HardwareUpgrades

Collections Retention Winbacks Loyalty

Customer Lifecycle Management

Marketing Process Management

Marketing Database Metrics/KPI’s/Reports Models/Segmentation

Marketing Research

To achieve business objectives SIRIUS will work towards an end state that will allow it to deliver results through customer focused marketing, targeting and service management.


Map customer stages to marketing strategies, plans and tactics

Integrate mass and targeted marketing activities

All customers are not the same….Retail, Automotive, Special Markets, Direct

What communication channels to use…Online, Email, Phone, Print, OVM/IVTM

The life of a SIRIUS customer…

Reacquire - Outbound Call Centre- Programs / Offers- Short vs Long term

Awareness- Mass Marketing- Event Marketing- Sponsorships / Partnerships- News Media- Word of Mouth

Consideration-Online-Word of mouth- News Media-Website

Acquisition- Sampling- Promotions- Retail

Activation- Call Centre- Online- Vehicle Purchase

Service/Loyalty- Call Centre- Online- Engagement- Up sell / Cross sell- Communication Preferences

Renewal- Call Centre- Online- Communications- Collections

Retention- Call Centre- Mitigation- Programs / Offers

Market / Customer Research- Independent and Panel


Acquisition (Media Player, prospects)

Objective:

Acquisition of new customers

Customer Targeting:

Source and drive prospects to the online listening registration page through a number of different online and offline marketing platforms. (i.e. Online media, SEM, events, sponsorships, promotions, etc.)

Offer Details:

Time limited online listening trial to SIRIUS Satellite Radio.

Durations determined and tested depending on the source of the promotion.

Measures of Success and Additional Details:

Number of registrations, Source of registrations (Partners, events, emails, etc)

Number of registration activations / listeners

Number of re-occurring registrations (after exclusion period)

Number of new subscriber activations

Effectiveness of different duration listening trials

Effectiveness of partner/sponsor and prospect data collection programs

Amount of listening time

Content and variety of listening


Acquisition (Media Player, prospects)

Set up unique listening trial promotion period

Drive Customers to listening registration platform

Recognition

Existing customers

Welcome

Engage and educate

Reminder

Activate registrants

Thank you

Provide offer incentive to drive purchase/activation

Results

Optimize and improve processes

Who is responding? Who is not?

What types of promotions?


Automotive Program


Automotive Program

Objective:

To motivate, stimulate and engage automotive customers during their Prepaid subscription term.

To obtain a customer paid subscription commitment.

Customer Targeting:

Use available automotive customer data to determine appropriate multi-channel communication streams and tactics.

Communications Strategy:

Welcome, entrench listening habits and increase engagement through content connections

Educate and inform customer of value benefits. (cost, coverage, content)

Utilize timing of subscription end date and test multiple offers

Offer Details:

Standard pricing plan options until customer conversion trends determined.

Test various offers to increase effectiveness.



Inbound call and purchase of SIRIUS subscription term.

Timing of customer subscription commitment.

Effectiveness of communication materials

Customer opt-in / Express Consent.

Email collection.

Online listening application usage.

Factors to Consider:

Each automotive OEM (Original Equipment Manufacturer) has unique requirements and business processes.

Level of dealer understanding and influence during purchase process

Ability to determine customer purchase intent (option vs. trim level inclusion)

Impact of Make/Model to communications/ability to convert.

Automotive Program


Automotive Program

Keys to Success…

Data integrity and solid, stable processes between partners

Automotive marketing and dealer support

Research: what do the customers say? Converters vs. non-converters?

Multi-channel communications – integration and knowledge of outbound and inbound tactics, offers.

Shared learnings and tactics across partners

Test, test, and test again…


Retention

Objective:

To resolve issues and reduce customer attrition of radio subscriptions through proactive and reactive programs.

Customer Targeting:

Analyze and understand specific areas of customer lifecycle where subscription cancellations occur and prioritize tactics by volume/effort.

Target using insight and customer criteria based upon relevancy, timing and customer profile attributes

Communications Strategy:

Data integration and sourcing across multiple channels is crucial in the development of an effective retention program.

Outbound mail programs (Renewal notification)

Email (Service messaging, offers, renewal payment reminders, etc.)

Call Centre CRM application (dynamic offer presentation/management)

OVM/IVTM (payment failure notification)


Offer Details:

Variable and unique offers dependant upon customer situation. (i.e. Stolen Radio = discounted radio offer)

Value of offer determined by customer profile attributes


Understanding and dealing with root causes as well as identifying early customer behaviour indicators are the key to driving proactive retention results

Number of customer deactivations. (Voluntary vs. Involuntary)

Subscription Renewal Rates

Deactivation Reason Codes

Communication program results

Number of retention calls

CRM application usage (offers presented, accepted, declined)

Retention


Retention

Keys to Success…

Analyze customer data and business processes to determine the areas that have the biggest impact to your objectives.

Establish key performance indicators that align to top-line objectives

Integrate as many customer touch points as possible

Automate programs to create timely and relevant messages

Research is an important activity that can provide additional insight and context to existing customer data.


Conclusion

Key Benefits of contextual data integration

Less time and efforts for data integration and analysis

Decisions are more timely

Marketing interactions are more relevant and just in time

Better visibility of impact on the business results and KPI


For more informationVisit http://www.dthree.com

Email: [email protected]

Merci

THANK YOU!