pleased to meet you

Pleased to meet you:How different customers prefer very different channelsProfessor Hugh Wilson, Dr Emma Macdonald and Dr Charles Randall

Maggs Reader Lifestyle Junky

Andy Barrak Astute Alpha

Natalie Mall Social Shopper

2

...SAS looks beyond the norm to find remarkable trends and behaviours that we didn’t know existed...

“”Jackie Clayton

Head of Nectar Insight

Contents

Great conversations 4

Meet your customers: 8Lifestyle Junky 10 Astute Alpha 14 Internet Investigator 18 Dedicated Fan 22 Social Shopper 26 Detached Introvert 30

Implications for marketing teams 34

SAS and MESH Planning 38

3

encourages marketers to be far more imaginative about the channel mix, offers, and creative approach they take as they seek to improve the relevance and impact of their marketing.

SAS has worked with Professor Hugh Wilson of Cranfield School of Management and market research agency MESH Planning to look into this issue. We are delighted to share the results of our research project with you – certain that you will find them as insightful, informative and, at times, surprising as we have.

The SAS® approachRelevance and impact are at the heart of great marketing conversations.

It is critical for marketing departments to understand how today’s demanding customers respond to marketing communications: their relevance and impact. Marketing does not have the desired impact unless it is relevant to the consumer. And the only way a marketer can be certain of a message’s relevance to the audience is if they can measure the impact.

Customer insight improves the relevance and impact of marketing campaigns and brings greater rigour to the marketing function. It also

SAS is the leader in business analytics software and services. Since 1976 SAS has been giving companies around the world THE POWER TO KNOW®

Richard Kellett Marketing Director, SAS UK

4

Great conversationsHave our customers stopped listening to us?

They feel bombarded by irrelevant sales pitches. And it’s got worse. Our IT colleagues keep on inventing new types of arrow for us to fire at our poor overloaded customers. No wonder they just focus on building better shields.

But what if they felt they were in a great conversation with us? Maybe they’d open up. Easy in the old world of a single point of contact – a store owner or a salesperson. Far more difficult in today’s multichannel environment. But it can be done. And companies who hold great conversations with their customers get great results.

Great conversations share three features. Firstly, they’re individualised. Rather like being

bought a birthday present, we expect the firm to know us well, to consider with care what we might appreciate and to deliver their message in a way which doesn’t put us out. When this happens, it feels like service, not being sold to. So it’s no surprise that whether the medium is loyalty mailings, branch visits or the firm’s website, individualised offers can increase conversion rates vastly.

Secondly, great conversations are dynamic. That is, rather than delivering our pre-prepared speech, we listen to the customer and respond appropriately. Scripted out of all humanity, call centre staff can feel about as responsive as a brick. And from stores to sales meetings, if the talking brochure on legs once worked, it works no longer – after all,

if it’s straight information we’re after, we can Google it in our own time from a source we find authoritative. A real-time response means real-time insight, but it also means empowering front-line staff to do their best for the customer, not controlling them.

Thirdly, great conversations are authentic. We can smell the firm’s remuneration scheme a mile off. We crave honest advice. And when we don’t get it, in a Web 2.0 world, our network soon knows about it. Firms which obsess about improving the customer’s world find that financials look after themselves.

In short, great conversations are relevant, and as a result they’re impactful. But relevance means different things to different people.

Whether the medium is loyalty mailings, branch visits or the firm’s website, individualised offers can increase conversion rates vastly.

5

Some of us want the firm to make all the running: ask us some questions, make a recommendation and we’ll do what we’re told. Others might want to be intimately involved in creative design for the next generation products. Or we might rely on our trusted peer-to-peer network for advice on what to do. The firm needs to be geared up to build relationships with each of these very different styles of engagement, and more.

A starting-point is to understand these different sorts of customer in order to consider how we should best craft great conversations with each. The research reported in this white paper describes six different customer segments we discovered, and how they deal with the firm across the multichannel environment.

We then face the challenge of re-engineering the marketing and sales organisation to respond well when the customer wants to talk to us, rather than obsessing about the next ‘campaign’. Marketing has come a long way since Mad Men, but having left one shore long behind, the land ahead still sometimes feels a distant haze. We end the white paper with a look at the competences we will require in the marketing – or customer response – function of tomorrow.

Companies who hold great conversations with their customers get great results.

Hugh Wilson MA (Oxon) DipCompSci (Cantab) PhDCranfield School of Management

Hugh Wilson is Professor of Strategic Marketing and Director of the Customer Management Forum at Cranfield School of Management. An influential author, speaker and consultant in marketing and IT, Hugh is listed in the Chartered Institute of Marketing’s global ‘Guru Gallery’ of ‘the 50 leading marketing thinkers alive today’.

His latest book, Marketing Plans 7e (with Malcolm McDonald), was published in April 2011.

6

About the researchHow do you find out what the customer really thinks about marketing?

We wanted to understand how different customers interact with different channels, and how effective the multichannel strategies adopted by different sectors were. We couldn’t hope to study every possible sector, so we focussed on those that we felt were both extremely significant to customers, and also had quite different customer relationship needs. So for this study we decided to focus on five sectors:

• Banking• Mobile network providers • Healthcare providers• Supermarkets• Soft drinks

The best source of the information on the impact of interactions had to be the customers themselves. We engaged innovative marketing research agency MESH Planning to help us. MESH Planning has developed an entirely new way of understanding how people connect with brands, called Experience Tracking. They capture customers’ experiences wherever and whenever they happen.

Experience Tracking uses a combination of real-time response through text messaging, online diaries and more traditional questionnaires, to unearth new insight on the ways customers are connecting with brands.

MESH recruited a panel of over 500 volunteers to log every significant interaction they experienced with their main provider in each of the five sectors, during a four-week period in early 2011. Whenever interactions occurred they sent a text (SMS) message capturing four pieces of information:

• Who the interaction was with• The channel through which it occurred• How relevant it was to the recipient • And the impact on their perception of the brand

7

From this information we used SAS’ statistical capabilities to look for patterns in how different customers interact with the various companies. We were able to identify a number of distinct behavioural segments. These are described in the next section of this report.

Every encounter is registered for:

Brand

Channel

Relevance

Impact

8

1Segment one:

Lifestyle Junky

4Segment four:

Dedicated Fan

6Segment six:

Detached Introvert

2Segment two:

Astute Alpha

3Segment three:

Internet Investigator

5Segment five:

Social Shopper

9

Meet your customers

Distinctive segments were generated based on the behaviour of the participants: how frequently they encounter TV, in-store, online, word-of-mouth, etc.

We identified nine distinct segments. Three of these were quite small and difficult to describe with confidence. However, the six main segments provided us with an eye-opening insight into customer’s lives, and how they viewed and reacted to their many different encounters with organisations in multiple sectors.

Based on our analysis we built up a distinct picture of each segment. These pictures led us to name the segments:

• Lifestyle Junky• Astute Alpha• Internet Investigator• Dedicated Fan• Social Shopper• Detached Introvert

Over the next few pages we will profile each type of customer, what they look like, what they respond to, and the implications for marketers keen to engage with them.

Charles Randall PhDSAS UK

Charles Randall is Solutions Marketing Manager for SAS UK where he combines the twin roles of active analytical marketing practitioner, with being a writer and spokesperson for SAS UK on the application of advanced analytics to business problems.

10

Female (60%)

Has children (+15%)

Younger(64% under 40)

Likes shopping(+6%)

Least environmentally aware (-10%)

Segment one:

Lifestyle Junky1

Margaret (Maggs) Reader

in the KNOW

About

I’m a married mum from Kent who loves her kids to bits. Spend my time taking care of the family and home while also working part time as a teaching assistant.

Love having a good old chin-wag with the girls and flicking through the weekly mags to check out the latest fashion and gossip!

Share:

Write something...

Friends (94)

Margaret (Maggs) ReaderI’m thirsty - bottle of water or pop? Silly question…Always cola! 45 minutes ago via iPhone – Like – Comment

Mike Bennett Not setting a good example for the kids! ;) x32 minutes ago – Like

Write a comment...

Margaret (Maggs) ReaderJust heard about latest cuts to our local hospital. Think it’s time to consider private, just can’t rely on the NHS these days :(3 hours ago – Like – Comment

Margaret (Maggs) Reader is going to Monthly coffee and catch-up Yesterday at 19.39 – Like – Comment

Margaret (Maggs) Reader Doesn’t Rihanna look great in the new gossip mag? I so love her new hair!Yesterday at 16.40 – Like – Comment

Margaret (Maggs) Reader Hmm, one of the big four have got some good deals on at the moment, free calls to everyone on that network so might switch when contract’s up. Yesterday at 12.52 via iPhone – Like – Comment

Emma Richards At last, now we can goss for longer! Do it!Yesterday at 14.11 – Like

Write a comment...

Margaret (Maggs) Reader Just been into the supermarket and picked up a few essentials for dinner tonight. I know it’s a bit cheaper at the big store but too inconvenient to travel across town and it’s always busier there. Or am I just being lazy? LOL Monday at 17.22 via iPhone – Like – Comment

2 people like this.

PJ You should shop online – ultimate in being lazy!Monday at 22.12 – Like

Write a comment...

Emma Richards

PJ

Tanya Howard

Post Photo Link Video

Ruth Cook

Amy Cameron

Andy Barrak

12

The Lifestyle Junky

Profile The most responsive segment, she enjoys being communicated with via most channels (except call centres). She is a heavy consumer of magazines, newspapers and text messages. She enjoys brochures particularly if they look like magazines and she will read the leaflets you put through her door.

One of the happiest segments, but being accepted by others is very important to her. She is an aspirational materialist and is not a greenie. She likes shopping, particularly in order to ‘keep up with the Joneses’.

The Lifestyle Junky tends to be young, urban and female. She is

from the segment most likely to have postgraduate qualifications but tends to work part time or manage the home. The rest of her time she devotes to her family, as children feature strongly in her life.

Engaging herMagazines and lifestyle-oriented mailings – and indeed outbound SMS communications – appeal to this segment. She enjoys shopping and point of sale activities appeal to her. By contrast, she doesn’t enjoy call centre interactions. Communications strategies should tap into belonging needs.

Her engagement with brands is likely to extend into the online realm

and lifestyle-oriented online communications will appeal. She is an active participant in online social communities (such as MumsNet). This segment is the most proactive online sharer and therefore opportunities should be provided for her to voice her opinions, particularly given her positive attitude towards brands and marketing in general.

Appeal to her aspirations and give her a voice

13

Key statistics

per cent of sample channel preferenceencounters per week

7.15tvusingonlinenewspaperother

9%

magazine advertawareness vs average

7.4x

newspaper advert awareness vs average

2x

0

– +

+8% 0

– +

-36%

response to all forms of marketing

response to sponsorship

14

2Segment two:

Astute AlphaMale (59%)

Unmarried (+7%)

Graduate(+12%)

Confident complainers(+5%)

Likely to have new tech(+14%)

Andy Barrak

in the KNOW

About

Sussex dweller but earn my crust working in the city. Net result – busy and single! You’ll probably find me at my computer or on my phone – for work and play.

Great lover of technology especially my phone. Really despise sales calls, being hurried, bad service and anyone ripping me off. Grrr!

Share:

Write something...

Friends (148)

Andy BarrakTook me 20 minutes to get out of the car park due to traffic at from the superstore. *Sigh!* 3 minutes ago via Android – Like – Comment

Andy Barrak Annoyed – why wouldn’t the checkout supervisor take my £50 note? Sunday at 12.43 via Android – Like – Comment

Vicky Alvez I’ll take it!Sunday at 14.55 – Like

Write a comment...

Frank Watson

Vincent Choi

Vicky Alvez


Andy BarrakCalled bank to correct a standing order. Good to talk to a native English speaker rather than someone working to a script with no latitude for deviation. Wednesday at 10.11 via Android – Like – Comment

Priya Singh haha! I remember when you lost it on the phone the last time. You were not a happy chappy!Wednesday at 11.05 – Like

Write a comment...

Andy BarrakGot called by the mobile company – don’t like them wasting my time with sales I haven’t enquired about. When I need something, I’ll call you! 1 hour ago via Android – Like – Comment

Andy Barrak > Richard ChorleyGuess what? That £300 MP3 dock I’ve been harping on about for the past 6 months has just gone on sale. Once again, it was worth waiting…3 hours ago – Like – Comment

Frank Watson > Andy BarrakThoughts on the new hand held? Or what about the new Android? My mobile’s on the verge of packing it in…Yesterday at 16.40 – Like – Comment

Andy BarrakWhy are the best deals always on things I don’t normally want? Monday at 13.03 via Android – Like – Comment

Andy Barrak was at London City Airport with 2 others. Saturday at 21.02 via Android – Like – Comment

James Groves

Esther Roberts

Margaret Reader

16

The Astute Alpha

ProfileHe wants to know about brands when HE wants to – and not before. He is not responsive to uninvited outbound communications although he is not averse to well-targeted mailings. His preferred contact with a firm is through face-to-face outlets, online, and particularly call centres.

He is demanding and is happy to complain (loudly) if his expectations are not met. He is savvy about marketing and will seek the best deals. Technologically sophisticated he is an early adopter and others come to him for advice.

Predominately male, members of this segment are well educated and in employment.

Domestic issues are not a priority as this segment is less likely to be in a stable relationship or have children.

Engaging himDon’t expect a relationship – he’s not really into commitment – more a marriage of convenience. He prides himself on his well informed decisions, so positive magazine reviews carry enormous weight with him.

Don’t give him cause to complain; give him good products and efficient service. But if he does complain then make sure you handle him respectfully and efficiently.

Because the price needs to be right, don’t waste money on outbound

communications. Instead, gear yourself up for efficient inbound response online and in call centres.

Provide efficient service and in-bound sales

17

Key statistics

0.4x


6.25usingin storetvonlineother

14%

call centreawareness vs average

5.3x

newspaper advert awareness vs average

0

– +

-25%0

– +

+34%

response to radio

response to magazine

18

3Segment three:

Internet InvestigatorFemale

(70%)

Married (+20%)

Happiest with life(+9%)

Likely to turn online for recommendations

(+11%)

Least loyal to brands(-7%)

Peter Joiner likes this.

Diana Hunt

in the KNOW

Share:

Write something...


About

Life’s great. With a fantastic house, kids, loads of friends, and a loving husband, what more could I ask for? I don’t normally like gimmicks, but I love my new Tablet. I can find everything I want on the internet whilst juggling my busy life as a mum.

Friends (173)

Amanda Rooke

Peter Joiner

Laurie Patterson

Lucy Fryer

Natalie Mall

Darren Glassborrow

Diana HuntWas reading in an online newspaper about how the chairman of my bank is having a 6 million pound bonus. Think it is outrageous that bankers are having this sort of bonus. 2 hours ago via iPad – Like – Comment

Diana HuntJust got this e-mail from my supermarket with recipes for keeping kids interested during half term and a competition. Thought I’d share the link. Monday at 19:20 – Like – Comment

Diana HuntJust back from hospital. Was dealt with by a really nice nurse who was lovely. Yesterday at 11:42 – Like – Comment

Laurie Patterson Are you going to the meeting to discuss the future of the Primary care trusts? Yesterday at 12.16 – Like

Write a comment...

Diana HuntReceived a call from my bank whilst we were in the middle of our tea. They were trying to sell me something but wanted my date of birth and mother’s maiden name….Unbelievable!!!! Monday at 19:13 – Like – Comment

Amanda Rooke You’d think they were doing you a favour!Yesterday at 19.16 – Like

Write a comment...

Diana HuntI was in the hairdressers and I was chatting to the stylist. She was saying how much she likes her supermarket and I told her all about my problem in mine last week. Wednesday at 14:09 via iPad – Like – Comment

Diana HuntI was browsing posts on a voucher site and I saw the cola logo. I followed the link to the website. I had a browse of the website, but to be honest it looks like a lot of hassle for a few points. I did like that you can earn points towards cinema. Wednesday at 18:56 – Like – Comment

20

The Internet Investigator

ProfileThe Internet Investigators are the most avid online users, internet shopping, researching products, and are frequent users of expert recommendation sites. However, they don’t just rely on the internet, and will turn to friends and family for their views. They are very media aware, particularly devoted radio listeners, but are old enough to have developed a somewhat jaded attitude towards marketing.

They are not of the texting generation but do talk via online and real world channels. They are technologically savvy but less price sensitive than most. Happy to pay for quality and willing to invest in the future, they are most likely to rely on private

healthcare. This segment is the most satisfied with life.

This segment is older but exhibits no gender bias. They are almost certainly married and quite likely to have children living at home. This segment tends to be found in the North.

Engaging him or herTo engage with this segment your brand needs to have an effective web presence, including full feature specifications. Your brand must be visible and positively perceived in online forums. There is no need to emphasise price, rather focus on quality and future proofing for themselves and their family.

For outbound communications radio is an effective media, but you will reach them through most channels. No nonsense honest information works better than clever gimmicks which will be viewed dimly.

Provide rich online product information including peer and expert review

21

Key statistics

1.8x


10.2tvusingonlineradioother

5%

conversationawareness vs average

2.7x

online awareness vs average

0

– +

-7% 0

– +

-40%

response to all marketing

response to SMS

22

4Segment four:

Dedicated FanMale (65%)

Graduate (+17%)

Children (+17%)

Unlikely to turn online for recommendations(-17%)

Expects further communication

from a company (+5%)

Most environmentally aware (+9%)

Likely to turn to friends for advice(+9%)

Peter Joiner

in the KNOW

About

Northerner, happily married, 2 kids, partner in small firm of surveyors.Hates shopping – I let the missus take care of that! I honestly couldn’t tell you the price of a pint of milk!

Like to hear what people say but officially cynical about global warming.

It be right chilly ‘oop North!

Share:

Write something...

Friends (92)

Peter JoinerQuiet lie-in with the wife out with the kids doing the shopping – happy days! 3 minutes ago via Blackberry – Like – Comment

Suresh Patel > Peter JoinerGot the motor fixed last weekend. Thanks again for the recommendation.6 minutes ago – Like – Comment

Jon Mahoney

Suresh Patel

Harry Patterson


Peter JoinerPrice of petrol is shocking, even at the supermarkets. Thought they’d be using their clout to bring it down! Yesterday at 15.16 via Blackberry – Like – Comment

Jon Mahoney Agree. We are being totally ripped off at the pumps!Yesterday at 15.16 – Like

Write a comment...

Peter Joiner > Harry PattersonHarry, you’re good with technical things. What do you know about TVs? Want a new one for the bedroom…nothing too big. What would £400 get me? Yesterday at 18.40 – Like – Comment – See friendship

Jon Mahoney Suggest you get an LED. You can get a nice one for around £200, no need to spend more than that. Head to the electronic shop on the high street, speak to Geoff – a mate of mine. He’ll sort you out.36 minutes ago – Like

Write a comment...

Peter Joiner Nice one mate. 21 minutes ago – Like

Peter Joiner Haha! Saw ad of a man asking his wife not to do the big weekly shop, there was better things to do with his time. That’s me!Thursday at 18.36 – Like – Comment

Sarah Bell LOL!Thursday at 18.51 – Like

Matt Naysmith like this.

Peter Joiner It’s true. She likes shopping, I don’t. Everybody wins! Thursday at 18.58 – Like

Lucy Fryer

Matt Naysmith

Tom Reade

24

The Dedicated Fan

ProfileHe notices brands through all offline channels but the only one that strongly engages him is sponsorship; the rest leave him feeling less than impressed. He is a real world guy who doesn’t like to waste time online.

A dedicated fan, he has a passion that may be: a sport, a team, films, books, or other hobby. Through these activities he has built up a large social network which he turns to for advice when he needs it. He delegates the shopping to his wife and technology decisions to his mates. He can’t be bothered to shop for price. He keeps his life simple.

Unsurprisingly this segment is predominantly male and older. He lives in a stable household with spouse and children present. He almost certainly works and is reasonably well off. Whilst Dedicated Fans can be found all over the country, they are particularly concentrated in the Midlands.

Engaging himSponsor his favourite team or hobby – sponsorship is the most pervasive and persuasive touchpoint for this segment. If you want to contact him through other channels, then use promotions linked to his team or hobby to generate a positive association.

Make his life easier by selling to his wife as he detests shopping. Ignore his moans about price because he can’t be bothered to act on them.

Other ways of reaching him are by incentivising recommendations from his offline mates and through trusted affiliates such as his sports team.

Sponsor his team and don’t bother with price incentives

25

Key statistics

3.5x


14.4tvusingnewspaperin storeother

4%

sponsorshipawareness vs average

above the line awareness vs average

0

– +

-20% 0

– +

-17%

response to shopping

response to online

15x

26

5Segment five:

Social ShopperFemale

(59%)

Loyal to brands(+3%)

Uninterested in follow on communication

(-5%)

Unlikely to have new tech

(-9%)

Natalie (Nata) Mall

in the KNOW

About

I’m young at heart, if not in body! A bit of a social butterfly, you’ll probably see me about town either doing the weekly shop or catching up with my friends.

Known to love a bargain and firm believer in keeping it simple. Oh, and don’t ask me about computers or anything whizzy, I won’t have a clue!

Share:

Write something...

Friends (242)

Natalie (Nata) MallOpened the post & got £3 clubcard vouchers & extra points coupons - very handy. Very glad to receive it & make the most of the points. 38 minutes ago – Like – Comment

Natalie (Nata) Mall Got a very high phone bill even though I hadn’t used all my free minutes or texts. Charge for looking at my emails was £16. Can this be right?Yesterday at 10.52 – Like – Comment

Natalie (Nata) Mall We get a lot of advertising from the bank, which is a total waste of trees. I just wish they’d actually send me something I need, like a better rate on my ISA or a nice new credit card offer!Friday at 15.12 – Like – Comment

Mary Swann I’m furious with our bank - although they know my financial situation at present is not good, they continue to exacerbate the situation with unrealistic bank charges for meagre overdraws of 0.79p with £25 charges.Monday at 22.12 – Like

Write a comment...

Jenny Underhill

Mary Swann

Annette Pringle


Natalie (Nata) MallReceived bank statement, three sheets of paper where one would do nicely, and well over a week out of date!3 hours ago – Like – Comment

Natalie (Nata) Mall is going to Spa Weekend with 2 others. Yesterday at 12.17 – Like – Comment

Bob Pringle Liz, I don’t think you have internet included in your price plan.Yesterday at 10.58 – Like

Write a comment...

Annette Pringle I received a leaflet through the door, it was an A4 size leaflet with four pages of in-store offers!2 hours ago at 12.58 – Like

Write a comment...

5 people like this.

Natalie (Nata) Mall Really? I thought I did…but then again I can never be sure when it comes to my phone. I’m so useless with technology, it’s a miracle I even managed to read my emails in the first place!Yesterday at 13.31 – Like

Jack Goodall

Angie Berry

Andrea Walter

28

The Social Shopper

ProfileThe Social Shopper is the heaviest SMS and online channel user. She is the heaviest user of mailing and one of the most active in-store shoppers. She enjoys shopping and responds positively to the in-store experience. This segment is one of the most positively disposed to online channels and also to receiving word of mouth recommendations. Online, she looks for other people’s opinions but doesn’t share hers as much.

She is the second most price-conscious segment and is moderately green. She has the lowest self-perceived technological sophistication of all segments.

This segment is more likely to be female and over 40 years. They are less likely to have children at home, but remain the main household shopper.

Engaging herShe will respond to mailed incentives and is probably an active loyalty card member. An active CRM programme delivering visible incremental benefits is needed to retain her as she is prepared to switch for better value.

She is a consumer of social media discussions of brands, although she won’t be driving them. Combining these traits, she is a natural for social incentives such as Groupon.

Provide incentives and make recommendations available

29

Key statistics

1.8x


8.35usingtvonlinein storeother

23%

SMSawareness vs average

2x

online awareness vs average

0

– +

+24%0

– +

-19%

response to conversation

response to newspaper

30

6Segment six:

Detached Introvert

Least satisfied with life(-6%)

Non-graduate(+8%)

Lowest brand identification(-3%)

Jack Stillman

in the KNOW

About

Please write something about yourself...

Share:

Write something...

Friends (0)

Mark King pokes JackHey mate where are you? We haven’t seen you for ages. 3 hours ago – Like – Comment

Mum Stillman pokes JackCould you give us a call please love?Yesterday at 16.40 – Like – Comment

Ade Vert“Missed you at the venue last week. Drop me a line.”4 days ago – Like – Comment


32

The Detached Introvert

ProfileThis is the least online of the segments and even in the offline world they are not particularly engaged with brands. Touchpoints are likely to be those they come across anyway such as TV, in-store and newspapers. They really don’t like being mailed to. They rarely discuss brands with others and they only make contact with firms when they have to.

This segment is disconnected not only from marketing, but from life in general. An introvert, they prefer to rely on their own abilities to master new technology rather than asking for help. They are the least satisfied with their lives.

This segment has a very slight male bias but pulls members equally from all walks of life. As a consequence there are no strong demographic markers to distinguish them from the average customer. For many this is a natural response to over-marketing.

Engaging him or herThis segment appreciates the small things in retail / service spaces – products in stock, cheques cleared on time, appointments easily made and kept. For outbound communications use TV as it is a relatively engaging channel for this segment. On no account send them outbound mail.

So ensure that the retail experience is a positive one and use courtesy calls to routinely check if they need any help with a product.

Deliver strong in-store experiences and don’t contact by mail

33

Key statistics

0.3x


2.7usingtvin storeonlineother

38%

above the lineawareness vs average

0.5x

below the line awareness vs average

0

– +

-22%0

– +

+0.2%

response to direct mail

response to advertising

34

Implications for marketing teams

Introduction These segments are strikingly different in how they relate to companies. They share one characteristic, however. They want to wear the trousers. To let us know when they need us. And they expect us to be ready and waiting when we’re called upon. And meanwhile, to listen more than we speak.

This is not the marketing of common parlance, in which our customers meekly respond to our stimuli like Pavlov’s dogs. It’s far more interesting. Far more heterogeneous. It requires much action, but to adapt the martial metaphor of the marketing campaign, the commands come from the customer and the acting is internally directed. Ramping up the organisation to deal with this empowered customer requires attention on several fronts.

Structure and rewardsWe know that the customer touches multiple channels in their journey with us: researching our brand on the web, consulting friends on Facebook, calling us, meeting our staff, getting service through Twitter. And as this research makes plain, these multichannel journeys vary greatly between segments. But somehow, our organisational structure hasn’t noticed. Channel silos compete to keep the customer, at whatever cost to the relationship and the bottom line. Rewards focus on the value we get, not the value we deliver.

There is no perfect structure. It’s difficult to pack a complex world

into one or two dimensions of an organisational chart. But just as a thought experiment: what if we organised around the customer? Charged people with looking after customers holistically irrespective of product, channel or stage in the buying cycle? Rewarded people around the health of the whole relationship? Quite absurd, of course...

Insight and analyticsIn the research we discovered that certain behaviours were more common among men than women, or among younger rather than older people. But there are plenty of exceptions. There are Internet Investigators that are young men and Astute Alphas who are mature women. Customers differ on their multichannel preferences, not according to our easy demographics. The only way we can hope to put someone into the right category and treat them appropriately is by looking for the clues they leave behind every time they interact with our organisations.

To do this we will need to develop a nervous system that reaches out beyond marketing into every single customer facing department, from retail stores to accounts receivable. As the information flows in, we can build up an institutional memory of that person, their likes, dislikes, what channel or promotions they responded to.

Interpreting this falls to marketing’s analytical cortex. The people,

methods, and systems that will trawl through the data for us to find the patterns and anomalies that allow you to treat each customer as an individual and offer them a conversation, their way.

One other point. The segments we have described vary greatly in their price sensitivity, their cost of marketing, and their cost to serve – in short, in their lifetime value to the firm. Our customers may have taken charge of the conversation, but in our responses we still need to be mindful of the need to ensure that the relationship works for both parties. Knowing what we have put into the relationship and what we can expect to get out of it may steer our own choices – whether this is a relationship we would wish to nurture and invest in, one which we are happy to continue provided we can steer the customer to low-cost channels, or one we feel comfortable allowing to fade. This requires further customer insight, along with conscious strategic choices about who to serve.

ExecutionAs the customer takes control of the relationship we need to be ready for them. Nothing irritated our respondents more than when the right hand did not appear to know what the left was doing. We need to be able to continue the same conversation that may have started in a TV advert as the customer moves online and then in-store. We need to be just as confident in our ability to provide a consistent,

35

individualised experience across channels as we are in our execution capability within a single channel.

PeopleDealing with all these diverse segments requires every ounce of emotional intelligence that the human brain and heart can provide. On stage in customer-facing roles, we need people. We need to hire for attitude and train for skills. We need to empower them to do their best for the customer, arming them with individualised insight but encouraging them to add to this technology the gift of warm, human contact.

Backstage, we need some other skills, too. Joining up the customer journey across some seriously complex channel chains requires process people: bright, reliable, tenacious, technologically skilled, and naturally collaborative.

LeadershipWhen we reflect on the organisations that most impress us in their ability to adapt to today’s complex multichannel world, there is another common thread. Every one has a top team member – typically the CEO, though it can be another high-profile executive – who is unremittingly passionate about putting the customer first. Simplifying this complexity. Making it easy for the customer to combine channels as they feel the need – a signpost here, a helping hand there. Underpinning the inevitable complexities of

multiple products, channels and functions with the bedrock of a shared paradigm: we do what it takes to help the customer. Trusting that reputation and enthusiasm will do the rest. They don’t lead through mission statements but through stories, symbols and, above all, personal example.

The Chief Marketing Officer of tomorrowWe cannot pretend that holding relevant, impactful conversations with such diverse customers is in any way easy. It requires the coordination of an intricately entwined set of resources across marketing, sales, service, channel partners, IT and HR, not to speak of strategy and finance. We can only observe that the marketing leaders who seem to keep their sense of direction in this complex world do so with the help of the same compass: an unerring focus on the customer through both formal and informal insight processes. We hope that this white paper has added a little to your understanding of the customer of tomorrow.

Emma Macdonald MBus(Research) PhDCranfield School of Management

Emma K Macdonald is Senior Research Fellow in Marketing, Deputy Director of the MSc in Strategic Marketing and principal researcher of the Cranfield Customer Management Forum. Emma’s current research interests include customer experience, engagement and empowerment. In particular she is investigating the role of customers in value co-creation and assessment, and in developing new techniques for assessing customer experience in real time.

36

Research Methodology

Experience TrackingAn Experience Tracker uses a combination of real time response through text messaging, online diaries and questionnaires, to unearth new insight on the ways people connect with brands. There are typically 3 key stages of data collection in MESH Planning’s Experience Tracker.

Data collectionStage 1: Legacy brand health questionnaireA 15 minute questionnaire which collects data on people’s usage, loyalty and opinions about relevant brands and advertising. This questionnaire is similar to a traditional brand tracking study and provides benchmarks against which to evaluate the rest of the data.

Stage 2: Real-time experience trackingFor the next four weeks participants are asked to text whenever they see, hear or experience anything to do with one of the brands of interest. Using their mobile phone they send a code which has four components:

1 BRAND: Which brand was it? 2 OCCASION: Where did you see, hear or experience it? 3 IMPACT: How did it make you feel about the brand? 4 RELEVANCE: How well did it contribute to your aims with the brand?

Each participant has access to an online diary. Reminders pop into the diary every other day. Here the participant can elaborate on the experiences they’ve had, such as why an experience has been positively or negatively received. Throughout the study period, participants are also emailed a daily satisfaction question and a weekly ‘critical incident’ question for each brand.

Stage 3: Future brand direction questionnaireAt the end of the period we ask participants their views again to see how they have changed. Further attitudinal measures are captured relating to consumer behaviours, psychographics, and environmentalism.

AnalysisStage 4: Identification of behavioural clustersA technique called Cluster Analysis was used to group individuals according to their frequency of encountering certain types of channels, such as in-store, online and TV. The cluster analysis identified six large segments (and three tiny segments) with unique patterns of behaviour.

Cluster analysis is a statistical technique which places objects into groups such that the objects in a given cluster tend to be similar to each other and dissimilar to the objects in other clusters. The specific technique used was SAS 9.1 K-Means Cluster Analysis (with FastClus).

Stage 5: Channel preference mappingA channel preference map was created for each cluster mapping reach, impact and relevance of each channel type. The map takes the form of a bubble chart. The size of the bubble shows the reach of that channel – i.e. how many participants report an encounter of that kind. The two axes of the chart show impact and relevance. As you can see in the bubble chart for the Lifestyle Junky segment, the in-store channel has high reach for this segment (i.e. a large bubble), AND it is a channel with high perceived quality both in terms of impact and relevance. The Lifestyle Junky segment also has a high preference for mobile phone texting.

37

Stage 6: Attitudinal overlayThe attitudinal data collected during Stage 3 was overlaid on the behavioural clusters developed in Stage 4 to build up a psychographic profile of their attitudes. This picture was enhanced by a review of the qualitative data collected as part of the diary component of experience tracker.

Fiona Blades CEO MESH Planning

Fiona set up MESH in 2006 following a career as a marketing manager and advertising planning director. In 2007 she was listed in the entrepreneurs section of Research Magazine’s ’50 Faces to Watch.’ Fiona is a frequent speaker at industry events, both official and fringe.

Stage 7: Demographic characteristicsClusters were also profiled based on their demographics including age, gender, family stage and socio-economic status. The demographic analysis of each cluster was adjusted to reflect the demographic profile of the general UK population. This was particularly the case with gender where we needed to correct an approximately 2:1 female bias amongst study participants.

38

Appendix

SAS is the leader in business analytics software and services, and the largest independent vendor in the business analytics market.

We offer the broadest portfolio of Customer Intelligence solutions in the market place. These solutions allow companies to:

Deepen Customer Insight: manage customer data and understand the behaviour patterns of your best and worst customers. Insight into your customers’ attitudes, behaviour, profitability and risk, allows you to make smarter decisions for your marketing organisation.

Choreograph Customer Interaction: the ability to choreograph a comprehensive, multi-channel

marketing communication strategy and optimise every resource to effectively achieve your goals and maximise your ROI.

Continuously Improve Marketing Performance: with scorecards, reporting and underlying analytical capabilities that provide visibility of your marketing process and the resulting performance.

This is why companies like Nectar, John Lewis Partnership and Confused.com power their marketing with SAS® Customer Intelligence solutions. And, why the leading analyst organisations consistently place SAS so highly not just in analytics, but across all the key capabilities needed to deliver effective multichannel marketing.

Through innovation SAS helps customers at more than 50,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®.

www.sas.com/uk

MESH Planning was founded in 2006 by Fiona Blades and Stephen Phillips, and became the most awarded agency within 2 years.

‘The Experience Tracker’ is MESH’s revolutionary way for advertisers to measure all consumer interactions with their brands in real-time. The innovation allows brands to comprehensively track how, when and via which channels they interact with consumers, the immediacy of the reporting ensuring accuracy

and overcoming the perennial issue of post-rationalisation.

MESH Planning is part of the 38th Floor Group, which also includes Spring Research and Tuned In, a lifestyle research agency.

www.meshplanning.com

pleased to meet you

Documents