Acquisition and Beyond: Using Customer DNA to Gain and Keep Valuable Customers
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The document discusses the importance of using customer DNA for effective customer acquisition and retention, emphasizing that retaining existing customers is more cost-effective than acquiring new ones. It highlights the challenges in traditional marketing approaches and the need for personalization based on real-time data to enhance customer experiences. Key takeaways include the necessity for organizations to adopt a customer-centric culture and the use of advanced analytics to engage customers more effectively.
Acquisition and Beyond: Using Customer DNA to Gain and Keep Valuable Customers
- 1. Acquisition and Beyond: Using Customer DNA to Gain and Keep Your Best Customers February 18th 2015 Steven Noels CTO, NGDATA
- 2. 2Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Attracting a new customer costs five times as much as keeping an existing one. (Lee Resources 2010)
- 3. 3Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Acquisition Targets Anonymous Identified Existing customers
- 4. 4Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Traditional Acquisition is Costly and Ineffective ▪ Testing messaging and offers is costly and time consuming when marketing to broad segments ▪ Personas and segments are defined at a point in time, meaning real-time knowledge is not applied to improve communication as individual preferences evolve over time
- 5. 5Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Traditional Acquisition (Continued) ▪ Individuals interact with each channel differently ▪ Not using multi-channel data means missed opportunities to connect with the right customers, at the right time and in the right way ▪ Customers expect to be treated as individuals
- 6. 6Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission A customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related. -Bain Consulting
- 7. 7Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission The Value of Personalization However, few companies have been able to implement Source: Econsultancy, Digital Marketing Exchange of those surveyed believe that "personalization is critical to our current and future success” 94%
- 8. 8Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Technology Barriers regard IT roadblocks and lack of technology as barriers to adopting or improving personalization Source: Econsultancy, Digital Marketing Exchange No Solutions – No Automation – Manual Work – Low ROI 84%
- 9. 9Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Organizational Barriers “Customer centricity is a culture of putting the customer at the center of everything you do.” —BRIAN SOLIS Organizational change is required to put the customer front and center. This means more than just a technological change, it means a desire to put the customer first.
- 10. 10Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Using personalization to support the different phases of acquisition
- 11. 11Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Use current customer history to enhance the web experience of the unknown prospects Personalize the on-boarding experience Create acquisition campaigns that have the right messages and incentives for your audience for further engagement Build individual profiles on anonymous visitors. Apply customer behavioral information to anonymous profiles to create an effective multichannel experience Personalized Profiles to Attract Unknown Customers
- 12. 12Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Use knowledge of customer and past anonymous prospect behavior to make relevant offers. Create acquisition campaigns that have the right messages and incentives for your target audience. Identify top potential converters/ highest value prospects. Provide a unique web experience based on behavioral data, appropriate offers at the right time, anticipate prospects needs through the process. Engage Identified Prospects
- 13. 13Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Use current customer history to enhance the web experience of the unknown prospects Maximize the return on investment within the first few months of acquisition. Increase customer lifetime value. Use DNA to improve service immediately after acquisition to increase cross and upsell likeliness Upsell/Cross Sell Current Customers
- 14. 14Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission What is Customer DNA? a collection of 1000s of predefined metrics, calculated in real time and organized per identified customer based on a variety of interaction- and fact-based data sources, using a variety of predefined calculation, prediction and/or retrieval methods providing actionable data for marketing & customer-centric applications
- 15. 15Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Customer DNA is Based on Interaction Data Monitor customer behavior, translated into DNA metrics
- 16. 16Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Anonymous Profiles to Increase Acquisition ▪ Real time up-to-date propensity scores uncover temporary changes in customer willingness to buy a product ▪ Set alert notifications for when customers are most willing to convert 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Monthly propensity Lily propensity Target group membership cut-off Customer Targetting
- 17. 17Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Enterprise Architecture: Adding the Customer Within the Current Enterprise Architecture – Improving existing BI landscape Operational Systems External Data Contract/Product Data Customer Operational Data Reference Data Reporting / Analytics Enterprise BI and reporting Enterprise Analytics Applications Marketing and Social Data Customer Interaction Data Campaign Data ERP/CRM Data Data Warehouse Data Service Desk Customer CRM and IVR Systems Web and Mobile Mobile Apps Customer Website Channel / Campaigns Mail SMS Print Broadcast Marketing CampaignMgt Sales Office Agent / Advisor
- 18. 18Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Enterprise Architecture: Adding the Customer Within the Current Enterprise Architecture – Improving existing BI landscape Operational Systems External Data Contract/Product Data Customer Operational Data Reference Data Reporting / Analytics Enterprise BI and reporting Enterprise Analytics Applications Marketing and Social Data Customer Interaction Data Campaign Data ERP/CRM Data Data Warehouse Data Service Desk Customer CRM and IVR Systems Web and Mobile Mobile Apps Customer Website Channel / Campaigns Mail SMS Print Broadcast Marketing CampaignMgt Sales Office Agent / Advisor
- 19. 19Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Lily & Enterprise Architecture Within the Current Enterprise Architecture – Improving existing BI landscape Operational Systems External Data Contract/Product Data Customer Operational Data Reference Data Reporting / Analytics Enterprise BI and reporting Enterprise Analytics Applications Marketing and Social Data Customer Interaction Data Campaign Data ERP/CRM Data Data Warehouse Data Service Desk Customer CRM and IVR Systems Web and Mobile Mobile Apps Customer Website Channel / Campaigns Mail SMS Print Broadcast Marketing CampaignMgt Sales Office Agent / Advisor
- 20. 20Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Lily Delivers Next Generation for Greater Acquisition From Raw Data to Individual Preferences
- 21. 21Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Become Data Driven About Acquisition Use any volume of real-time data to actively guide and optimize business processes based on continuously growing insights on customer behavior, intent and preferences.
- 22. 22Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Key Takeaways ▪ Phases of Acquisition − Anonymous Prospects − Identified Prospects − Existing Customers ▪ Customer DNA and profiling enables one-to-one marketing for greater acquisition ▪ Proactively engaging through real time messaging and offers increases customer acquisition and retention for higher customer lifetime value
- 23. 23Copyright 2014 NGDATA ®, Inc. Confidential – Distribution prohibited without permission Are you ready to use Customer DNA to gain and keep your customers? Learn more about how Lily Enterprise can help your company. Schedule an appointment with an NGDATA representative to get a personalized walkthrough. Don’t forget to follow up and share with a friend stevenn@NGDATA.com
Editor's Notes
- #3: https://econsultancy.com/blog/63321-companies-more-focused-on-acquisition-than-retention-stats/
- #5: For example, using purchased lists alone does not provide the real-time insights necessary to effectively communicate with your highest potential customers. This leads to high recurring fees for, at best, incomplete and, at worst, inaccurate information Traditional mass marketing for acquisition is costly and ineffective Individuals interact with channels differently, making segmentation more difficult as more channels are added Without leveraging all available cross-channel customer information, you risk missing opportunities to connect with the right customers, at the right time, in the right way In today’s landscape, customers expect to be treated as individuals, making segmentation ineffective Customers need to be at the center of your strategy
- #6: For example, using purchased lists alone does not provide the real-time insights necessary to effectively communicate with your highest potential customers. This leads to high recurring fees for, at best, incomplete and, at worst, inaccurate information Traditional mass marketing for acquisition is costly and ineffective Individuals interact with channels differently, making segmentation more difficult as more channels are added Without leveraging all available cross-channel customer information, you risk missing opportunities to connect with the right customers, at the right time, in the right way In today’s landscape, customers expect to be treated as individuals, making segmentation ineffective Customers need to be at the center of your strategy
- #7: http://www.forbes.com/sites/avidan/2014/11/09/11-marketing-trends-to-watch-for-in-2015/
- #10: http://www.visioncritical.com/brian-solis-qa/
- #12: Use current customer base behavior history and apply it to unknown prospect behavior to improve the value of your lists or website such as which incentives are most effective to continue. Use information from lists and anonymous visitors to enhance other channels in your acquisition strategy (such as call centers, email campaigns, online experience) for a more effective multichannel experience. Build an individual profile on this visitor. Use past customer information to predict their preferences and value. Create acquisition campaigns that have the right messages and incentives for your audience for further engagement. Personalize the on-boarding experience Learn from your customer before you know him/her
- #13: Use current customer base behavior history and apply it to unknown prospect behavior to improve the value of your lists or website such as which incentives are most effective to continue. Use information from lists and anonymous visitors to enhance other channels in your acquisition strategy (such as call centers, email campaigns, online experience) for a more effective multichannel experience. Build an individual profile on this visitor. Use past customer information to predict their preferences and value. Create acquisition campaigns that have the right messages and incentives for your audience for further engagement. Personalize the on-boarding experience Learn from your customer before you know him/her
- #14: Use current customer base behavior history and apply it to unknown prospect behavior to improve the value of your lists or website such as which incentives are most effective to continue. Use information from lists and anonymous visitors to enhance other channels in your acquisition strategy (such as call centers, email campaigns, online experience) for a more effective multichannel experience. Build an individual profile on this visitor. Use past customer information to predict their preferences and value. Create acquisition campaigns that have the right messages and incentives for your audience for further engagement. Personalize the on-boarding experience Learn from your customer before you know him/her
- #15: Customer DNA: Is a collection of 1000s of predefined metrics, calculated in real time and organized per identified customer Is based on a variety of interaction- and fact-based data sources, using a variety of predefined calculation, prediction and/or retrieval methods Provides actionable data for marketing & customer-centric applications
- #16: Let viewers know know there will be a customer DNA specific webinar coming up