how to lose customers
TRANSCRIPT
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8/8/2019 How to Lose Customers
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How to Lose Customersin Five Easy Steps
How can the three Is of marketing help to maximize customer value?
As most marketing executives already know, losing valuable customers is all too easy. Ater all, organizations engage
in a dizzying variety o customer interactions across a broad range of products and services. Combine that
complexity with product-centric organizational structures and measures, and you've got a recipe for unwittingly
engaging in practices that can drive away valuable customers.
But it doesnt have to be that way! Take a stroll through this e-book to learn how smarter customer interactions and
more customer-centric measures can help you deepen and grow relationships with your most valuable customers.
What common practices are resulting in anemiccustomerprofits?
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8/8/2019 How to Lose Customers
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H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
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Time or a new approach:The three Is o marketing
Since the beginning, most business models have been built around organizational structures, management
and incentive plans, fnancial systems and the our Ps o marketing: product, price, promotion and placement.
Many comapnies have proessed to shiting their attitudes, claiming to be customer-ocused, customer-obsessed,
customer-driven or whatever. But even to this day, the heart o most business models remains product-centric.
That means companies requently all into the Five Easy Steps, whether they realize it or not.
I youd like to get back on track, replace the traditional ocus on the our Ps. Instead, coalesce your energies around the
three Is: insight, interaction and improvement. Then exploit readily available technologies to excel in all three dimensions:
Gain deeper insight Understand and predict customer value at a holistic, enterprisewide level.
Choreograph better interactions Engage customers in a way that enhances mutual value.
Gain continuousimprovements Measure and report KPIs that matter, optimize investment of sales and marketing
resources, and continuously learn from every customer interaction.
Martha Rogers, Ph.D.Founding Partner,
Peppers & Rogers Group
Lets break it down further. What does it actually take
in order to achieve these three objectives?
3
What does product-
centricity causemarketers to lose
sight of?
view video clip(1 minute 17 seconds)
What does product-
centricity cause
marketers to lose
sight of?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
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H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
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Three Is = One customer-centric,closed-loop business model
In order to... You must be able to...
1. Manage quality customer data.
2. Predict customer behavior.
3. Profle and segment customers.
4. Manage and optimize segment strategies.
5. Engage high-potential customers.
6. Measure and report results.
7. Optimize marketing investment.
8. Apply lessons learned.
Deepen customer insight
Choreograph customer interactions
Gain continuous improvements
in marketing perormance
Lets drill down into the opportunity, the challenges and the
key steps associated with each of the three Is.
Je GillelandGlobal Strategist, SAS
4
What exactly
are the three Is
of marketing?
view video clip
(1 minute 20 seconds)
What exactly are the three
Is of marketing?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
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H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
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InsightDeepen customer insight with superior data management and analytics.
The opportunity
Everyinteractionwithacustomerisachancetogetdatathatleadstodeepercustomerinsight.Neverbefore
could you get so much inormation about customers and markets, transer that inormation into usable
knowledge, and guide the investment o resources with precision.
The challenges
Trouble is, data pours in rom multiple channels, rom incompatible computing platorms, in mismatcheddata defnitions and redundant customer entries. Transorming it all into a clean, analysis-ready ormat can
be a daunting challenge.
The key steps
Manage quality customer data. Establish a data management platorm that integrates data rom multiple
sources, then cleanses and prepares the data to create a comprehensive view o the customer.
Create customer insight. Most comapnies have simple analytics that tell you what was and what is, but ew havean accurate view o what will be, why and what to do about it. Exploit predictive analytics to truly understand
customersnot just past behaviors, but likely uture preerences and purchase patterns. Then you can antici-
pate their needs, improve customer retention and fnd smart ways to cross-sell and up-sell.
Profle and segment customers. Develop eective customer profles and segments based on customers
historical behavior, proftability and uture potential. Dont just use segments to support product-push
campaigns, but to predict customer needs and respond accordingly.
Insight Interaction Improvement
Rich MartinoSr. VP of Market Information and
Research, U.S. Bank
5
How can analytics-
driven insights helpcompanies treat millions
of customers as
individuals?
view video clip (1 minute 20 seconds)
How can analytics-driven
insights help companies
treatmillions of customers
as individuals?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
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InteractionChoreograph interactions to improve the customer experienceat every touchpoint.
The opportunity
Customers expect to receive a consistent experience across every channel and the sense that the company knows
them, whether theyre interacting via direct mail, the Web, customer call center or in person at a branch ofce.
The challenges
With thousands o campaigns to manage, spanning hundreds o customer segments and dozens o media chan-
nels and markets, many institutions settle or scattershot marketing. When customer interaction data is scatteredaround in data silos, it can be difcult or impossible to get a complete view o activities across the spectrum. Its
even difcult to know when not to communicatewhen to pull back to avoid potentially alienating the customer.
The key steps
Develop and optimize segment strategies. What unique treatments should each customer receive? Whats the best
bundling o price and promotion? What is the best strategy or up-selling, cross-selling and retention eorts?
Armed with richer customer insight and targeted customer segments, marketers are becoming more selective
and scientifc about where they invest resourcesand, in some cases, which customers they will even accept.
Engage eectively with customers.Naturally,marketingsuccessstemsfromtargetingtherightcustomers
with the right oers at the right timeeven in real timewhile prudently avoiding spending on unproftable
prospects. With deep customer insight, you can eectively manage the customer dialogue across multiple prod-
ucts and channels, balancing the realities o budgets, sales capacity and other constraints.
Insight Interaction
Je GillelandGlobal Strategist, SAS
Improvement
6
Why are treatment
tracks an important
basis for customer
interaction strategies?
view video clip (31 seconds)
Why are treatment tracks
an important basis for
customer interaction
strategies?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
7/13
H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
Printer-Friendly
ImprovementDont just defend marketing performance; actively and continuously improve it.
The opportunity
The results o every campaign can be captured to help refne customer segments and marketing activities the next time
around, or a continuous cycle o improvement. Furthermore, spend that shows proven results gets budgeted again, gets
applied wisely where it will deliver optimum returns, and then is more likely to be increased.
The challenges
Measurement and accountability are hard sells in creative organizations. But the only way to be sure youre on track
is to prove it. Even when marketing appreciates the need or measurement, it isnt easy. Marketers are oten orced
to cobble together data rom sales, marketing research, syndicated databases and other ragmented sources just to create
a composite view o what (you thought) was happening. And it is usually a rear-view eort to support the annual plan,
not a tool to guide real-time course improvements or to show credible ROI.
The key steps
Meaningul and ongoing improvement requires excellence on three ronts:
Measure and report on all aspects o the marketing organization to align activities to strategies and goals, and toimprove perormance and accountability.
Optimize investment across direct and indirect marketing. Analyze and optimize marketing mix elements, such as advertising,
promotion and pricingmedia plans by medium and marketand customer segmentation and treatment strategies.
Continuously learn and improve through a closed-loop systemleading to a knowledge-based relationship with your
customers that will dierentiate you rom the rest.
Insight Interaction Improvement
Je GillelandGlobal Strategist, SAS
7
How does the ability
to measure, learnand improve translate
into competitive
advantage?
view video clip (56 seconds)
How does the ability
to measure, learn and
improve translate into
competitive advantage?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
8/13
H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
Printer-Friendly
How do you get there?Start small. Assemble an integrated technology platform.
Evolve in stages. You dont have to do a ash cutover to a new business model. You can implement technologies
in low-risk stages. Each investment builds on the previous one. You can test pilot programs within a single depart-
ment or customer segmentand then roll them out more broadly as they prove their value.
Integrate technology into a whole. Youve gathered by now that the Holy Grail o customer value depends on
big-picture perspective. I you want customers to place more aith (and dollars) in your company, you have to
understand and manage the total relationshipspanning contact channels, products, related entities and time.
So the last thing you want is niche sotware components that dont play well with others.
With todays technologies, unction-specifc components can be integrated into a single, synergistic system.
Inormation ow then transcends unctional silos, organizational boundaries, computing platorms and specialized
tools. Decisions can be made rapidly with ull knowledge o underlying context and hidden interdependencies.
Rich MartinoSr. VP of Market Information and
Research, U.S. Bank Lets take a closer look at the integrated technologies
needed to realize the full potential of the three Is.
8
How did U.S. Bank
evolve from silosof product-centricity
to enterprisewide
customer-centricity?
view video clip
(2 minutes 4 seconds)
How did U.S. Bank
evolve from silos of product-
centricity to enterprisewide
customer-centricity?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
9/13
H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
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Technologies that enablea best-practice approach
Customer insight is about deepening your understanding o individual customers and treating customers
as individuals. It requires technologies to integrate and analyze data across products and channels. To maximize
success, you need tight integration between your customer insight and customer interaction technologies.
Customer interaction is about managing customer dialogue. Interaction technologies include marketing mix
optimization, behavioral triggers, digital marketing and real-time decision making (to name a ew). Theseinteraction technologies are only as good as the customer insight that uels themwhich leads us back to the
integration imperative.
Improving marketing perormance is about measuring and reporting what matters. Its about aligning
organizational activity around actions that create value with the customers that matter most. Its about
integrating the learning that occurs with every customer interactionwhich again leads us back to the
integration imperative.
Je GillelandGlobal Strategist, SAS
Click on the text in blue to learn more about the specific technologies that supportthe three interdependent parts of a customer intelligence marketing platform.
9
Why do recent
advances in
technology make
this an exciting time
to be a marketer?
view video clip (2 minutes 43 seconds)
Why do recent advances
in technology make this
an exciting time to be
a marketer?
Enabling Technologies Deepen Customer Insight
Data integration lets you pull data from nearly any source and applies proper data quality
techniques to ensure customer information is in the best possible state.
Online Insight helps you get the most out of your e-business channels and improve
the effectiveness of your marketing campaigns.
Forecasting
to make marketing decisions accordingly.
Social Marketing Analysis identies patterns and gleans intelligence from enormous
volumes of text.
s lets you associate costs with revenue and actively manage
Customer Analyt ics provides descriptive and predictive insight through response models,
churn analysis, customer value analysis and more.
Credit riskanalysis and assessment capabilities help you develop and track accurate credit
risk scores.
allows you to identiy previously unseen trends in customer data helping you
Enabling Technologies Choreograph Customer Interactions
Campaign management technology can help you produce and managemore intelligent lists
so you send the right oers to the right customers across your channels.
E-mail/mobile marketing delivers large-scale multimedia messaging capabilities including
e-mail, SMS, MMS and WAP within single-channel or multichannel marketing campaigns.
Event triggers send alerts to let you know when its most appropriate to reach out to your
customers.
Real-time decision making improves revenue and retention by optimizing every customer
interaction through real-time delivery o decisions and recommendations.
Optimization enables you to maximize overall value by determining which oer to send to each
customer while considering actors such as contact strategy, budget and channel constraints.
Enabling Technologies Continuously Improve Marketing Perormance
Marketing perormance reporting suraces specifc metrics based on individual user needs
and allows you to drill down or a deeper understanding o perormance and any other
potential issues.
Marketing mix optimization helps you track and improve the eectiveness o your marketing
investments and quantiy the ROI o marketing activities.
Marketing metrics and scorecards ideally oer prebuilt marketing KPIs incorporating
marketing best practices in areas such as business/fnance, marketing program, customer
and marketing processes.
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
10/13
H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
Printer-Friendly
Summary:
Better approach... better outcomesWhat to do: What youll gain:
Deepen customer insight. A360-degreeviewofcustomersspanningallcontactchannels,products and services.
Accuratecustomersegments(thebasisfortreatmenttracks)andfore -knowledge o customer behaviors.
Accurateassessments(andscoring)ofpresentandlifetime customer value.
Choreograph better interactions. Steadilyimprovedreturnsfrommarketingcampaignswitheachiteration.
Marketingprogramssynchronizedacrossunits,productlinesandchannels.
Triggeredinrealtimebyvariouscustomermilestonesorbehaviors.
Protableinteractions.
Measure to gain continuous improvements. Campaignresultsautomaticallyplowedbackintoongoingimprovements.
Quantiableproofoftheresultsfrommarketingspend.
OptimizedROI,givenavailablebudget,channelcapacitiesandotherconstraints.
Integrate technologies and processes. Acohesive,enterprisewidemarketingplatformthatspanscustomergroups, products and channels.
Afoundationforcustomer-centricityeveninthemostproduct-centricorganizations.
10
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
11/13
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8/8/2019 How to Lose Customers
12/13
H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
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Tips from the Trade - How to Execute Campaigns That Deliver ROI
In this Webcast, we explore how successful companies are enhancing their approach to campaign management tooperate more effectively, including segmentation techniques, contact policy management, and using predictive
analytics to drive decision making.
Tips from the Trade Competing on Web Analytics
This Webcast features a panel of thought leaders who will discuss best practices in online analytics. It explores how a successful online analytics strategy is built upon specific key performance indicators,
integration of online and offline data and appropriate use of social networking sites.Stop Guessing - Start Knowing: Strategies to Optimize Your Marketing Campaigns
Our expert guests will tell you how integrating customer value into your business model can improve both
short- and long-term protability and why customer value management is so critical to your organizations
long-term success.
Learn more!Webcasts
12
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS
-
8/8/2019 How to Lose Customers
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H O W T O L O S E C U S T O M E R S I N F I V E E A S Y S T E P S
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Jim GoodnightCEO, SAS
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. indicates USA registration. Other brand and
product names are trademarks of their respective companies. Copyright 2008, SAS Institute Inc. All rights reserved. 493057.0808
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view video clip
(2 minutes 43 seconds)
Why partner with SAS?
Table of Contents
How to Lose Customers in Five
Easy Steps
The ve steps to failure
Time for a new approach:
The three Is of marketing
Three Is = One customer-centric,
closed-loop business model
Insight
Interact
Improve
How do you get there?
Technologies that enable a best-
practice approach
Summary:
Better approachbetter outcomes
Learn More!
White papers
Webcasts
About SAS