Accelerating Customer Insights

“Marketing so insight-led that it feels like a service”

Ajay KelkarChief Operating Officer

Customer is No 1

“The true business of every company is to make and keep customers”

- Peter Drucker 1954

Services Marketing

• You can hold a “product” in your hand

• While a service experience is “fragmented”

• A “Service” tends to be a “sum of many parts”

• For a Bank or a Retail store-right from the entrance, the people, the ambience contribute to Brand experience

“Sculpting a branding idea around packaged goods is much easier.

The bottle of Coke can’t talk back.It never changes shape or colorand if you don’t like how it is,it won’t ever argue with you.”

“The bank the service provider, the retail store are all much more complicated.You can’t hold them in your

hand.

In fact, most times they can hold you in their

hands.

You walk in and around them, besides them...

It is the experience which defines them.”

"Credit cards aren't banking --they're information," declared

Rich Fairbank,Capital One

"Very few companies have the ability to test and learn." But those twin

capabilities -- testing and learning -- form the foundation on which Capital One is built. The company tests every product offering, every procedural change and,

with the patience and persistence of a good scientist, it runs experiment

after experiment.

Marketing trends!

The big picture

• Three technology trends are disrupting marketing• Media fragmentation• Addressability• Interactivity & Customer

control

Trend #1: Media Fragmentation

• TV in India once meant a single channel with low penetration.

• Now it has a possible 3.7 billion options, with three platforms, 500 channels, 29 languages and dialects, 10 genres and five formats

• TV viewers were a captive audience, they are now fragmented in terms of attitude and attention.

Trend #1: Media FragmentationMore media channels & content streams now

compete for consumer attention

1960 Mass Media Matures

TV channels per home: 5.7

Radio stations: 4400

Magazine titles: 8400

2011, Mass media, R.I.P. …TV channels per

home: 82.4

Radio stations: 25,000+

Magazine titles: 17,300

4.4. billion pages

indexed by Google

Trend #2: Shift to addressable media

Non Addressable

Media

• Billboards• Newspapers• Radio• TV

Addressable Media

• Direct Mail• Telephone• Email

Quasi Addressable

• Retail PoS• Web

Trend #3: Interactivity & Customer Control

• Permits marketer to engage with audience in two way dialogues

• Customer wants to manage her relationship with the brand!

Brings in a huge amount of Customer data !

Customer is firmly in Control!

Marketing Imperatives!

Every Marketer’sImperatives!

– Listen to customers• They leave footprints behind in the “data”

that companies capture-leverage that!– Relevancy and readiness

• Be ready when the customer is ready

Every Marketer’sImperatives!

18

What are your customers saying?

I am not a market segment.

I am an individual.

I am not a market segment.

Know me.

Anticipate my needs...

Start Now...I can become very loyal.

Wait…and I’m gone.

Events drive a need for Financial products!

Using Consumer events to “listen better”

Creating Listening programs

Marketers can spot Event triggers….

“ Let me find a group of people to talk about it.”

“ I have an offer …”

offer

Traditional Campaign Management

“ Let me find the best offer to fit this person ’ s need. ”

offeroffer

offeroffer

“ Let me find the best offer to fit this person ’ s need. ”

offeroffer

offeroffer

offeroffer

offeroffer

“I have a person with a change in behaviour that

suggests a need…”

Event based Campaigns

Event Triggered Marketing

The Financial Institution can be of service to a customer by understanding

- Customer Profile & lifestyle changes - Transactional & Behavioral changes- Product & services adoption

- Overlaid with market conditions

Benefit : The Right Product to the Right Customer AT the Right Time , in the Right Way

Three key Aspect of Event based Marketing• Timing

– Communication with the Customer only WHEN they have the need. NOT when we have a scheduled campaign.

• Significance– Communicate because the Customer has a need that is

SPECIFIC to that individual.

• Speed– Get the message to the Customer WITHIN 48 hours. After

this the message becomes more and more irrelevant.

The Extra Value Proposition : Total Customer Relationship (TCR)

- From a monologue mode of communication to a dialogue

-From Bank’s time to contact to a ‘Customer’s time to contact’

Event Based Campaigns : TypesCustomer Behavior Trigger Examples

• Activity-based ( trigger on significant event )– Large Deposit / Withdrawal in account– Maturing FD– 1st time Salary credit into account

• Pattern-based (trigger on behavioral change over a period of time)– Change in online banking patterns – Drop-off in card usage – across the board or by category– Significant balance increase / decrease

• Can be complimented by propensity scores • Needs to be actioned off in almost “real time”

Deterioration of Response Effectiveness

TimeDays

Effectiveness %

1 2 3 4 5

80%

50%

20%

Increase timeliness of lead follow-up/response. - Examples• Effectiveness of Event triggered leads drop by 80% after 5 days

(source: NAB);

Key Business Ideas• Build a core competency in “Data led”

marketing• Move towards Analytics

– Internet is a training ground for “customer pull” channels

– Build analytical capability• Customer behavior changes –spot them

as they happen…– Event based Marketing– “Market so well that it feels like a service”

Partnering enterprises to optimize marketing performance

Cequity Customer Marketing Centre

CustomerManagement

PlanningHub

Customer Interaction Hub- Call Centre

LeadManagement

Hub

ServiceManagement

Hub

Customer Insights & Analytics Hub

CustomerCampaign

ManagementHub

Infrastructure &Technology Hub

Our Mission

• To help our clients use their data effectively to enable Business impact

• To provide clients Analytical solutions that accelerate Customer centricity

www.cequitysolutions.com

The Age of Reason is here.

Keep the faith