The Marketing Consortium

Developing an Integrated View of the Customer

In these days of multi channel, real-time, near time marketing it is easy to forget about the foundation of effective marketing:  have an integrated view of your customers and prospects.  We find that in virtually every conversation with clients the topic of customer data comes up.  The discussion can range from straightforward topics such as how to use Customer Data Integration (CDI) tools to keep data clean to more complex discussions around how to effectively combine customer information from multiple business units.   It’s been our experience that every company struggles in some way with the issue, but there are some clear similarities among companies that are winning the “customer data battle”.

    We have found five key drivers to successful assimilation and deployment of customer data.  These include: business driven data requirements, a holistic view of “customer data”, disciplined data governance, a detailed business case, and a well defined data deployment program.   

1) Business Driven Data Requirements - Companies getting the most out of their customer data have their requirements well articulated and driven by current and potential users.  They are able to articulate exactly what types of decisions specific data elements are supporting and how that information can be delivered to maximize business impact.  These “requirements” then become the basis for what data is gathered, at what frequency, and in what technology environment.  Being able to clearly define data requirements down to the user level is a great start to a successful data management program.

2) Holistic View of Customer Data - Developing an integrated view of the customer means assembling as much relevant information on a customer as possible while adhering to all legal and privacy requirements.  Historically companies have kept billing information in their financial system, marketing information in the customer data warehouse, and contact information in their CRM system.  Today’s high performers in this space combine behavioral, marketing promotion/response, and financial information (as well as attitudinal and demographic data) as the basis for making smarter and faster business decisions.

3) Disciplined Data Governance - A key component of an effective data management program is a defined data governance model.  This model defines data ownership, data sourcing, data access, data privacy, and data security.  This governance model is critical to assuring that key functional users receive the information they need while insuring the appropriate level of consistency, efficiency, and access across the enterprise.

4) Detailed Business Case - Investments in data, technology and infrastructure are typically subject to the same business case requirements as any other expenditure.  The ability to identify where, how, and by how much an investment in data will drive business results is an important aspect of data management excellence.  Functions asking for data capabilities should be accountable for producing incremental performance based on operating faster, better or cheaper.  Having users “sign up” for business benefits is a way of maximizing the probability that data investment will have the targeted payback.

5) Data Deployment Program - When developing a data management capability it is important to avoid the “if we build it they will come” approach to deployment.  It is important to have a plan on how customer information will be deployed to marketing managers, customer service representatives, financial analysts, and sales executives.  The plan should include awareness, educational, and service and support components.   Additionally, there should be a process for monitoring and measuring data usage to enable future enhancements/changes to the program.

       Effective data management requires planning, process and strong linkages to the business.  It is also an ongoing process which evolves with changes in the market, customer, and competitive environment.  That said, making sure these key pieces are in place will put a company in good stead to use customer data to tactical and strategic advantage.   

Delivering on the Brand Promise

Managing Marketing Complexity: Delivering on the Brand Promise

One of the more interesting developments in the business world is the significant increase in marketing spend - including advertising, CRM technology and new channel development - at a time when most companies struggle to connect with customers in a way that maximizes loyalty and repeat spend.  In fact, it is hard to remember a time when there was less loyalty to financial institutions, phone companies and airlines.  Clearly, some of the lack of “commitment” by customers can be blamed on more information available on the web, lower barriers to switching (i.e. cell number portability), and aggressive promotional tactics (zero interest balance transfer on credit cards).

However, there appears to be more to the issue.  Specifically, a number of industry statistics indicate that companies are simply failing to meet the needs and expectations of their customers.  A recent University of Michigan Customer Satisfaction Study found consumers increasingly dissatisfied with financial services companies, retailers and even e-commerce providers.  And in the much maligned automobile industry, most companies have repeat rates of less than 50%, with some as low as 30%.

What does that have to do with marketing? One might ask.  Marketers don’t make the cars, build the networks or handle service calls.  Our jobs as marketers are to get the customers in the door; it’s the responsibility of operations and customer service to make sure everyone is happy.  There’s not much marketing can do to keep someone from walking out the door, is there?

Well, actually there is.  If a customer is unhappy, there is clearly a mismatch between the brand promise to that customer and the actual customer experience.  And while the rest of the company plays a big role in delivering that experience, marketing has the ability and responsibility to have a big impact on customer satisfaction. 

First, marketing develops the brand promise and attracts customers with that promise.  Linking that promise to customers who most value it, by accurate segmentation and targeting, is a key responsibility of the marketing function.   This segmentation is critical to maximizing marketing ROI as well as reducing churn.

Second, good companies provide ranges of service and support based on what is important to the customer.  Additionally, this service/support level must be provided with an eye to the level of profitability (lifetime value) of the customer. The ability to provide these configurations is dependent on an integrated view of the customer which is best defined by the marketing organization.

Finally, high performing companies are required to be more nimble than ever before.  For all the reasons listed above, product development cycles, campaigns and promotions must happen faster and more frequently than at any time in history.  Setting the pace in the marketplace based on customer and competitive dynamics falls squarely on the shoulders of marketing.  In fact, it is hard to imagine that market cadence being set anywhere else in the organization.

Maintaining customer loyalty is one of today’s biggest challenges for any company. Meeting that challenge requires marketing to play a key role in delivering the branded customer experience.

Welcome Alton Adams!

Welcome Alton Adams, Global Managing Partner for Accenture's Customer Insight practice, as our guest moderator!