How to Lose Customers

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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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!

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About SAS


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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?

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Easy Steps






Insight

Interact

Improve



practice approach

Summary:


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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


Easy Steps






Insight

Interact

Improve



practice approach

Summary:


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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


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?

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Insight

Interact

Improve



practice approach

Summary:


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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


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


Easy Steps






Insight

Interact

Improve



practice approach

Summary:


Learn More!

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Webcasts

About SAS


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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


Easy Steps






Insight

Interact

Improve



practice approach

Summary:


Learn More!

White papers

Webcasts

About SAS


9/13


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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.


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


Easy Steps






Insight

Interact

Improve



practice approach

Summary:


Learn More!

White papers

Webcasts

About SAS


10/13


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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.

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Table of Contents


Easy Steps






Insight

Interact

Improve



practice approach

Summary:


Learn More!

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About SAS


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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

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Insight

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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

About SAS

SAS is the leader in business analytics sotware and services, and the largest independentvendor in the business intelligence market. With innovative business applications supported by

anenterpriseintelligenceplatform,SAShelpscustomersat44,000sitesimproveperformance

and deliver value by making better decisions aster. Since 1976 SAS has been giving customers

around the world THE POWER TO KNOW . www.sas.com

Why partnerwith SAS?

view video clip

(2 minutes 43 seconds)

Why partner with SAS?

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Easy Steps






Insight

Interact

Improve



practice approach

Summary:


Learn More!

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About SAS

How to Lose Customers

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