© 2012 Forrester Research, Inc. Reproduction Prohibited · 2012-03-08 · 3 © 2012 Forrester...

© 2012 Forrester Research, Inc. Reproduction Prohibited 2 © 2009 Forrester Research, Inc. Reproduction Prohibited

Activating Analytics: The New Customer Intelligence Imperative

Srividya Sridharan, Analyst

March 6, 2012

@Srividya


+

Source: Art Market Blog (http://www.artmarketblog.com/2008/03/11/art-market-blog-staggering-art-market-statistics/)


“The sexy job in the next 10 years will be

statistician. . . . The ability to take data — to be

able to understand it, to process it, to extract

value from it, to visualize it, to communicate it

— that’s going to be a hugely important skill.”

Hal Varian

Google’s chief economist

Source: Dataspora (http://www.dataspora.com/2009/05/sexy-data-geeks/)


Source: O’Reilly Radar (http://radar.oreilly.com/2011/09/building-data-science-teams.html), FlowingData

(http://flowingdata.com/2009/06/04/rise-of-the-data-scientist/), and SearchBusinessAnalytics.com

(http://searchbusinessanalytics.techtarget.com/news/1280099515/Data-scientists-helping-businesses-navigate-big-data-seas)


You also know analytics is

mainstream when this happens…


Source: http://www.colbertnation.com/the-colbert-report-videos/408981/february-22-2012/the-word---surrender-to-a-buyer-power

Predictive analytics is……


The state of intelligence and insights today

A roadmap towards an Intelligent enterprise

Activating analytics in the Intelligent enterprise

Agenda


What’s keeping Customer Intelligence professionals up

at night?


We have entered the “Age of the Customer”

Source: June 2011, “Competitive Strategy In The Age Of The Customer” Forrester report


Most marketing departments employ out-dated thinking

Source: October 2010, “It’s Time To Bury The Marketing Funnel” Forrester report


Marketers need to put the customer at the center

Source: October 2010, “It’s Time To Bury The Marketing Funnel” Forrester report

© 2012 Forrester Research, Inc. Reproduction Prohibited 21 Source: April 2011, “Preparing For The Intelligence Enterprise” Forrester report

Current decision support models miss the mark

© 2012 Forrester Research, Inc. Reproduction Prohibited 22 © 2012 Forrester Research, Inc. Reproduction Prohibited

Few firms operate at a strategic level of intelligence

Source: October 2009, “The Intelligent Approach To Customer Intelligence” Forrester report

Strategic intelligence

Marketing intelligence

Functional intelligence

54%

34%

12%

Base: 301 Customer Intelligence professionals





Agenda


What is Customer Intelligence?

The management and analysis of

customer data from all sources used

to drive marketing performance and

business strategy.


The Customer Intelligence Cycle

Customer

Knowledge

Capture

Manage

Analyze

Apply


Marketers see significant benefits in adopting customer intelligence

Source: October 2009, “The Intelligent Approach To Customer Intelligence” Forrester report


Ingredients of an Intelligent Enterprise


“When you two have finished arguing your

opinion, I actually have data!”

Source: “Make Meetings More Productive by Arguing,” Lifehacker (http://lifehacker.com/5480724/make-meetings-more-

productive-by-arguing)

Do you speak data?


Agility in customer-facing processes

Liaisons, business analysts Face-to-face business

participation

Processes Interactions

Specifications Prototypes

Plan Reacting to change

Tra

ditio

nal

Agile


The rules of engagement with customer data are changing

Source: September 2011 ,“Personal Identity Management” Forrester report


Marketing technology is table stakes


Customer intelligence plays different roles

Marketing technologists

Marketing practitioners

Customer strategists

Source: October 2009 ,“The Intelligent Approach To Customer Intelligence” Forrester report

Marketing scientists


Measurement & metrics analytics

Customer-focused

Marketing-focused

Service-focused

Customer lifetime value

Customer retention, churn

Customer profitability

Customer loyalty

Engagement

Campaign response

Revenue by source

Conversion rate

Cost per lead

Customer referral rate

Cost of service

Cross-sell/upsell revenue

Net Promoter Score

Likelihood to recommend

Average handle/wait time





Agenda


Effective activation of analytics needs alignment of multiple components

Source: February 2012, “Use Customer Analytics To Get Personal” Forrester report


Activation of analytics typically falters in four areas ENFORCEABILITY TIMELINESS

ACCURACY DELIVERY

Source: AI Access (http://www.aiaccess.net/English/Glossaries/GlosMod/e_gm_confidence_interval.htm) and Coupa

(http://www.coupa.com/solutions/innovations/cxo-dashboards)


How do you activate analytics?


Choose customer experience over customer relationship

Source: April 2011, “Beyond CRM: Manage Customer Experience” Forrester report


Each customer interaction is an opportunity to know more about the customer

Discover Explore Buy

The amount of information about the

customer grows as the relationship

advances through the

customer life cycle.

Source: Simply Zesty (http://www.simplyzesty.com/advertising-and-marketing/advertising/trends-ingame-advertising/)

Engage


Activate analytics at each interaction point

CUSTOMER LIFETIME

PR

OF

ITA

BIL

ITY

Discover Explore Buy Engage

VALUE OF

ANALYTICS

Acquire profitable customers

through better targeting.

Make customers profitable

faster.

Reduce cost to serve and

drive margin.

Intervene to cross-sell/upsell

and drive revenue.

Intervene to reduce number

of unprofitable customers.

Focus on retention, loyalty, and

engagement to drive

profitability. Focus on recovery.


Map out analytical options to lifecycle stages

Source: July 2011, “How Analytics Drives Customer Life –Cycle Management” Forrester report


Marketing scientists translate ‘geek’ to ‘Greek’

Marketing scientists


Level of translation varies at each step of the analytical process

Source: February 2012, “Customer Intelligence Needs A New Breed Of Marketing Scientist” Forrester report


Balance eye-candy with data integrity

Source:http://flowingdata.com/2009/11/26/fox-news-makes-the-best-pie-chart-ever/


The right visualization tools can help bring sophisticated analytics to life

Source: September 2011, “Use Interactive Marketing Dashboards To Improve Decision-Making” Forrester report


Leverage social media as a source of unstructured, unsolicited data

Customer ratings on 3rd

party sites

Social media data

CSAT and NPS scores

Survey comments and chat transcripts

Unsolicited

Solicited

Structured Unstructured


Take steps to integrate social media with customer data to unlock the value of unstructured data

Source: October 2011, “The Road Map To Integrating Social And Customer Data” Forrester report


So, when you head

back to the office…


What my friends think I do What my mom thinks I do What non-analytics colleagues

think I do

What partners think I do What I think I do What I really do

ANALYTICS PROFESSIONALS

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Srividya Sridharan

[email protected]

Twitter: @Srividya

www.forrester.com

© 2012 Forrester Research, Inc. Reproduction Prohibited · 2012-03-08 · 3 © 2012 Forrester...

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