Smarter campaign management engaging customers at point of maximum impact
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The document discusses the significance of smart campaign management in marketing, emphasizing the need for customer-centric analytics to enhance customer engagement and reduce churn. It highlights the challenges in managing customer data quality while underscoring the importance of leveraging predictive analytics to optimize marketing strategies. Additionally, it presents insights on the transformation of consumer expectations, particularly among millennials, and the need for personalized, technology-driven marketing approaches.
![Retail bank CMO’s care about
customers, engagement channels and collaboration
Customers
“If regulation is holding a business back, I suspect
they’re not thinking about the opportunity in the best way.
Consumer expectation is what I think about […] We
are focused on making it ridiculously easy for consumers
to find, assess, buy, and use our banking products.”
- Vinoo Vijay, CMO, TD Bank
Channels
Collaboration
“We’re focused on providing new services, new options,
and new channels. Our brand has to be relevant to the
needs of our customers today […] We have to be
available where our customers are available.
- Diane Scott, CMO, Western Union
“We work very closely with our CTO, my counterpart in
technology. For the reasons that everyone knows,
marketing is now a very technology-intensive
practice, and we have to work together with both our
internal tech folks as well as outside partners.”
- Arturo Perez, CMO, Citizens Financial Group
Sources: Adobe CMO Interviews
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Smarter campaign management engaging customers at point of maximum impact
- 1. © 2015 IBM Corporation BMS-4032: Smarter Campaign Management: Engaging Customers at Point of Maximum Impact Cori Parnes Hilton Grand Vacations Kevin Downey Prolifics - IBM Business Partner Holger Kyas IBM
- 2. • IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. • Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. • The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. • The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. Please Note: 2
- 3. 3 Cori Parnes Hilton Grand Vacations Director, Marketing Data Warehouse The Team Kevin Downey Prolifics IBM Business Partner, Senior Practice Director LinkedIn: https://ca.linkedin.com/pub /kevin-downey/87/486/74a Holger Kyas IBM Software Client Architect LinkedIn: http://ch.linkedin.com/ in/holgerkyas Twitter: @holgitonk https://twitter.com/hol gitonk
- 4. 4 • Hilton Grand Vacations - Providing the intelligence to connect with the right prospects at the right time • Banking Industry perspective on how Marketing & Campaign Management can benefit from Predictive Analytics • Q&A Agenda
- 5. 5 Marketing - The Life Blood of Companies “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter F. Drucker, MARKETING GURU “Instead of one-way interruption, modern marketing is about delivering useful content at precisely the right moment when a buyer needs it.” David Meerman Scott,Author, The New Rules of Marketing and PR
- 6. 6 Why Successful Companies are Marketing Leaders • CONSUMERS BUY FROM WHO HAS THE GREATEST MINDSHARE AT THE TIME OF PURCHASE • MARKETING CAN NOT BE SOLELY INWARD (PRODUCT) FOCUSED ANYMORE • THE 4 P’S OF PRODUCT, PRICE, PROMOTION AND PLACEMENT HAVE BECOME A THING OF THE PAST • TODAYS BUSINESS ENVIRONMENT IS DIFFERENT THEN EVER BEFORE BECAUSE OF TWO CRITICAL FACTORS: • THE PROLIFERATION OF DATA AND EASE OF ACCESS • TECHNOLOGY HAS GIVEN CONSUMERS POWER
- 7. 7 The Importance of Campaign Management “Marketing takes a day to learn. Unfortunately it takes a lifetime to master. “ Philip Kotler, marketing guru “Half the money I spend on advertising is wasted, and the problem is I do not know which half. “ Lord Leverhulme, founder of Unilever and philanthropist
- 8. 8 Campaign Management: Focused Marketing Efforts • SMART CAMPAIGN MANAGEMENT PROVIDES THE INTELLIGENCE TO CONNECT WITH THE RIGHT PROSPECTS AT THE RIGHT TIME FOR EACH PROSPECT • SCIENCE FUELED CREATIVITY GUT-FEELINGS ARE NOT ENOUGH IN OUR KNOWLEDGE-CONSUMER WORLD
- 9. 9 The Current Challenge MANAGING & IMPROVING customer data quality of marketable data is an ongoing challenge for every customer centric marketing business INCREASE MARKETING UNIVERSE LOWER LEAD ACQUISITION COSTS INTEGRATE PREDICTIVE MODELING IDENTIFY MARKETING TRANSACTIONS BY INDIVIDUAL PROVIDE EXPANDED CORPORATE DATA INTEGRATION BEYOND MARKETING SYSTEMS ACHIEVE CAMPAIGN MANAGEMENT BASED ON ADVANCED DATA MANAGEMENT TRUE MARKETABLE UNIVERSE COUNTS FOR EACH CONTACT TYPE (MAIL, EMAIL, PHONE) TRUE UNIVERSE COUNTS BY CUSTOMER TYPE RECORD OF MARKETING EFFORTS RELATING TO SINGLE CUSTOMER VIEW (WITH CAMPAIGN MANAGEMENT HISTORY) MORE ACCURATE, TARGETED AND CONCENTRATED CONTACTS BASED ON DIFFERENT MARKETING REQUIREMENTS RESPONSE TRACKING
- 10. 10 Information Management is the Key • THE ABILITY TO IDENTIFY AND TO TAKE ADVANTAGE OF POPULAR TRENDS, GEOGRAPHICALLY TARGET CAMPAIGNS AND TIME THE ALIGNMENT OF PRODUCTS OR SERVICES TO CONSUMER BUYING NEEDS IS NOT ONLY A “NICE TO HAVE” BUT IS CRITICAL FOR CUSTOMER CLOSES AND RETENTION INFORMATION IS THE KEY THAT POWERS YOUR COMPANIES MESSAGING TO CUSTOMERS AND THUS PAVES THE WAY FOR SMART CAMPAIGN MANAGEMENT
- 11. 11 Customer-Centric Analytics is a Marketing Game Changer • PROVIDING CUSTOMER INTELLIGENCE THROUGH DATA INTEGRATION PROVIDES A DRAMATIC ROI FOR THE BUSINESS BASED ON CUSTOMER BEHAVIOR FIND THE MOST PROFITABLE GROWTH AREAS FOR YOUR PRODUCT OR SERVICE USE DATA INTEGRATION TO GAIN INSIGHT AND TAKE THE BEST MARKETING ACTIONS WITH THE LOWEST RISK LEARN FROM EACH CUSTOMER INTERACTION TO OPTIMIZE YOUR INVESTMENT AND RESOURCES ACROSS THE ENTIRE BUSINESS • UNDERSTANDING THE CHANGING NATURE OF A CUSTOMERS LIFECYCLE THROUGH MODELING UTILIZING TECHNIQUES SUCH AS RFM (RECENCY, FREQUENCY & MONETARY) AND LTV (LIFE TIME VALUE) PREDICTS PRODUCT FIT AND REDUCES CUSTOMER CHURN • UNDERSTANDING YOUR CUSTOMER MEANS TO UNDERSTAND THE COMPETITION. THIS WILL ENSURE YOUR COMPANIES FUTURE VIABILITY
- 12. Res SMART Campaign Management - Reference Architecture Data Tier 3 Data Tier 4 Analytic Views Data Tier 1 CNIDHK RetailSortingDelivery Analyst My data My tables Data Tier 2 Legacy Cognos OLAP Cognos Reporting Cognos Ad Hoc Cognos Dashboard Traditional Analysis Client-side UNICA Marketing Analytics EDW/MDM Batch Data Social Data Provider Action Stream Data MapReduce Aggregate Non- Relational Storage TealeafWWW Business Analytics Engine Alert and Event Notification Spatial Analysis & Visualization Predictive Models Operational Analytics Hot Views Data Marts On Board Stand Alone Etc.BehaviorDemand My Algorithms SQLXMLMDX Sources Netezza or DB2 Data Integration Services Big Data Staging Operational Marketing Data Geo Data 3rd Party Data CM Data Mart Exploratory Lab Response Data Netezza or DB2/MDM Suite DB2 Netezza or DB2 SPSS Information Server Streams Netezza or DB2 How it works 12
- 13. 13 The Value Add of SMART Campaign Management INCREASE CUSTOMER RESPONSE RATES (AND ULTIMATELY CUSTOMER LOYALTY) REDUCE MARKETING AND CAMPAIGN COSTS REDUCE CUSTOMER CHURN INCREASE PRODUCTS OR SERVICES SOLD
- 14. 14 SMART Campaign Management “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter F. Drucker, MARKETING GURU
- 15. 15 • Hilton Grand Vacations - Providing the intelligence to connect with the right prospects at the right time • Banking Industry perspective on how Marketing & Campaign Management can benefit from Predictive Analytics • Q&A Agenda
- 16. 16 How do you take your decisions ?
- 17. Retail bank CMO’s care about customers, engagement channels and collaboration Customers “If regulation is holding a business back, I suspect they’re not thinking about the opportunity in the best way. Consumer expectation is what I think about […] We are focused on making it ridiculously easy for consumers to find, assess, buy, and use our banking products.” - Vinoo Vijay, CMO, TD Bank Channels Collaboration “We’re focused on providing new services, new options, and new channels. Our brand has to be relevant to the needs of our customers today […] We have to be available where our customers are available. - Diane Scott, CMO, Western Union “We work very closely with our CTO, my counterpart in technology. For the reasons that everyone knows, marketing is now a very technology-intensive practice, and we have to work together with both our internal tech folks as well as outside partners.” - Arturo Perez, CMO, Citizens Financial Group Sources: Adobe CMO Interviews 17
- 18. Banks need to pay particular attention to Millennials who have mature expectations & want to try innovations Source: Accenture 2014; Millennial Disruption Index; Gemalto study as reported in the Financial Brand, March 2015 Almost 1/3rd of US millennials say that they would switch banks if they could NOT use mobile banking 58% of millennials would like their bank to proactively recommend products or services based on their existing accounts, compared with 46% of those over 55 Millennials’ expectations are more mature – “I need a new house” not “I need a mortgage” - Shamir Karkal, CFO of Simple Bank 56% of millennials would be interested in a video chat with a representative by accessing a link on the website or an app, compared with 23% of those over 55 73% would be more excited about a financial services offering from Google, Amazon, Square, PayPal, or Square than from their bank 43% of millennials do not receive communication via their preferred channel (email, text, bank website, mobile app) 18
- 19. 19 In the future, clients will experience... The target state of personalized marketing will delight banking clients… Cross-channel dialogue Client E-Banking SMS / Email alerts Call center (CSC) CA Call center (UCC) Mobile Banking Multimat & ATM Mail Mobile Banking Marketing as added value Client centricity Banks will engage with its clients on an individual basis across all channels. A Mobile Banking app will be an essential component of the client’s everyday lives because it provides an exceptional level of information, value and support. Marketing messages and communications will be so highly targeted and relevant that they will be perceived as added value. Clients will enjoy a personalized client experience on Mobile Banking and E- Banking that is tailored to reflect their individual needs. Tip of the month With UBS Fisca, y ou can now sav e on tax and prepare f or y our retirement. 12
- 20. Benefits Improve cross-sell and wallet share Reduce attrition Generate new revenue streams Payment Data Transaction Data Account Data Customer Data External DataGenerate segments based on behavior Use insights to drive what is presented to clients Predict future life and financial events Predict likelihood of financial activities & churn based on behavior Use payment and transaction data to better understand customers Banking Behavior-based Customer Segmentation Industry Models, Analytics Models, Connectors, APIs 20
- 21. 21 The Value of Analytics and Campaign Management • A MARKED INCREASE IN CUSTOMER RESPONSE RATES AND ULTIMATELY CUSTOMER LOYALTY • REDUCES MARKETING AND CAMPAIGN COSTS BY TARGETING THE FEWEST AND BEST CUSTOMERS FOR EACH OFFER • REDUCE CUSTOMER CHURN BY PREDICTING BORDERLINE CUSTOMERS AND THEN ACTIONING THE RIGHT RETENTION CAMPAIGN • INCREASE PRODUCTS OR SERVICES SOLD BY DELIVERING THE RIGHT MESSAGE TO THE RIGHT CUSTOMERS • IMPROVE CROSS-SELL AND WALLET SHARE • REDUCE ATTRITION • GENERATE NEW REVENUE STREAMS • DRIVE CUSTOMER SATISFACTION • IMPROVE DECISION MAKING
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