bma chicago: customer centricity

© 2013 Acxiom Corporation. All Rights Reserved. © 2013 Acxiom Corporation. All Rights Reserved.

CAN YOU REALLY FAKE CUSTOMER CENTRICITY?

March 20, 2013- Andrew Dorn, Managing Account Director, Acxiom

© 2013 Acxiom Corporation. All Rights Reserved.

“I’LL HAVE WHAT SHE’S HAVING.”


HOW MANY OF YOU FAKE IT?


THE COMPANY YOU’RE IN…

Many highly self-assess their own customer-centric capabilities…

Yet, few can measure value at customer level!

We have a relentless focus on building cus-tomer insights to better understand and recognize high value customer segments

Have or will have value score for each customer

48%

21%


WHY IS THIS HAPPENING?

Lack of Resources: 22%

Incorrect Measures/Incentives: 24%

Lack of Data or Technology: 54%


POOR DATA INTEGRATION ABOUNDS

70% of marketers poorly integrate data from online & offline sources


RESULT: POOR CUSTOMER RECOGNITION

74% of marketers poorly recognize customers in real time

© 2013 Acxiom Corporation. All Rights Reserved.8

Once You Recognize A Customer, Then What?

•http://romeo.blkbx.com/

Identify Audience Propensities!

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Really.

CREATING CUSTOMER CENTRICITY…


AUTOMAKER

KEY PURCHASE DRIVERS

• Timing is EVERYTHING

• Broad market conditionsSILO AND INCOMPLETE DATA


AUTOMAKER

WHAT DID THEY DO?

• Corrected incomplete data

• Central data repository

• Custom analytics focus on “in market”

• Marketing memory of channel performance


AUTOMAKER

RESULTS

• $500 million in annual contribution margin

• $20 million in operational cost savings


GLOBAL HOSPITALITY

VACATION OWNERSHIP KEY DRIVERS

• Visit before you buy

• Market conditions for discretionary spendingGUEST EQUALITY


GLOBAL HOSPITALITY

WHAT DID THEY DO?

• Moved beyond basic segmentation

• Used ALL relevant data to model/score

• Quantity or Quality criteria

• Scalable solution


GLOBAL HOSPITALITY

RESULTS

• Lower quantity/Higher quality of leads

• Improved marketing ROI

• 50% increase in Volume per Guest


• Concern about the long term viability of the business portfolio

• It appeared that the rise of the internet would change the newspaper and publishing markets forever.

B2B INFORMATION SERVICES

GETTING TO KNOW END USERS

True Customer Knowledge


WHAT DID THEY DO?

• Segmented their market into 8 groups of true end users

• Identified market share and competition in each segment

• Developed products to fill gaps in offerings and gain market share – based on total revenue and PROFIT opportunity.

• Prioritized product development to address most important end users in those segments.

• Implemented marketing technology and processes allowing them to implement real-time customer centric interaction functionality



RESULTS

• A dollar of revenue now yields approximately twice the operating profit it did back in 2000.

• Over the past decade, the company has seen its market capitalization triple.

• The company’s electronic information products, software, and services now account for 80% of its revenue, completely the reverse of its model a decade ago.



B2B Focus – It is More Difficult!

Need to address customer duality

● OEM’s / Distributors / Retailers

● End Users (Businesses, Consumers)

● Panels, Advisory Boards

● Anonymous Population Challenges

● Metrics

Sales cycles are longer and multi-layered


SO, WHAT CAN YOU DO?

CREATE COMPLETE AND ACCESSIBLE DATA

ASSIGN CUSTOMER VALUE

INVEST PROPORTIONATELY


CUSTOMER CENTRICITY REMAINS AN ATTRACTIVE GOAL

MARKETING

ROI+15 – 30%

PRICINGPOWER

+5 – 7%

CUSTOMERPROFITABILITY

+10 – 15%


SOME BRANDS ARE SEEN AS ROLE MODELS

• Engagement feels authentic to brand

• Institutional memory enables personalized & integrated experiences. Brands do for, not to, customers

• Sustaining loyalty/preference…brands create more value than they capture

• But Are They Customer Centric?

Common themes…


SOME BRANDS ARE SEEN AS ROLE MODELS

• “. . .they’ve moved beyond lip service and re-oriented their entire operating model around the customer, increasing customer satisfaction and their own profitability in the process. Customer Centric companies understand not only what the customer values, but also the value the customer represents to the bottom line” Booze | Allen | Hamilton

What is True Customer Centricity?


IF YOU’RE DOING IT RIGHT…

THERE’S NO NEED TO FAKE IT!