Measurement Matters

transcript

Prepared by Supavadee Tantiyanon Director of Digital Services - Minor International Group & General Manager - mysale.co.th @Minor !

MATTERSMEASUREMENT

MEASUREMENT WHYWHATHOW

IMPACTS

THE REALITY

AGENDA

THE FUTURE OF CUSTOMER ENGAGEMENT - EXPERIENCE RELATIONSHIP

Credited: RightNow Technology

\ MEASUREMENT &

THE REALITY

Where are we now? What do we think?

Scatter Measurement

Still ad-hoc and not yet integrated

Don’t know how

Not sure how to show the impact to business

Big gaps on definitionNo clear policy

\THE SAD TRUTH

ONLY 11%OF MARKETERS’ DECISIONS ARE

MADE BASED ON DATA

\THE SAD TRUTH:INFLUENCE ON MARKETERS’ DECISIONS

Past Experience &

Intuition

Colleague Recommenda

Conversations with Experts

One-off Customer

InteractionsData

Source: CEB 2012

\ MEASUREMENT &

MEASUREWHY ?We need to measure customer experience to improve satisfaction and

loyalty…which will also reflect on the brand’s profitability in the long run.

SHIFT TO A CONNECTED WORLDShift in media landscape & Technology

1.0One-way Communication

TRADITIONAL CONSUMER

2.02-ways Communication with more dialogue

ONLINE CONSUMER

3.0Always-on Always Connected

CONNECTED CONSUMERSpeedy & Holistic Shift

Customers are now in control of the information and messaging, not brands.

UNDERSTANDING

\FOCUSon CUSTOMER EXPERIENCE

95% of employees don’t fully understand

their organisation’s strategy.

!Norton/Kaplan

Balanced Scorecard

50% of the people surveyed said that agents

failed to answer their questions

Harris

10% increase in customer retention results in a 30% increase in the value of the

company Bain & Co.

Nearly 70% of consumers said, they had ended a relationship due to poor customer service alone

!Datamonitor/Ovum 2009

Dissatified customers whose complaints are taken care of, are more likely to remain loyal , and become advocates, as

those that are “just” customers !

70-90% of what happens with

customers is driven by human nature and nothing to do with technology

McKinsey

Similar experience?What are the actions

10% 5% 0

Collect Feedback Alert Staff Use Insight Deploy and Improve

Tell Customers

Percent of companies that…

\ 2MEASUREMENT

3 WAYS MEASUREMENT MATTERS

1. ROI

2. KPI

3. INSIGHT

Measuring success and returns

Optimization engines

Context for planning

Return on Investment A simple equation

Business Value: Opportunity value Incremental value of the investment

Key Performance Indicators: An Optimisation Engine

Insights:

\ 3MEASUREMENT

Process Framework

Set Targets, Reporting Points and Reporting Audience

Customer management Planning

Trial Strategy and KPIs Implement Technology Apply Analytics

Relate KPIs to market and Strategic Objectives

Adjustment Strategy According to Learning

4. Interpretation

3. a) Testing b) Tracking c) Analytics

2. Establish Success Metrics (KPIs)

1. Establish Strategic Objectives

5. Action Planning

Continuous

Improvement

Knowing your Customers

Available data • Gender • Data of Birth • Occupation • Residential address • Delivery address • Purchase history

Customer segmentation

RFV Recency, Frequency, Value

Deliverable Phase 1 •  Customer segmentation •  Identify groups of established

customers who represent highest value

•  Identify groups of new customers with the greatest future potential

Phase 2 •  Market basket analysis

Customer Engagement KPIs (Examples)

Program Effectiveness & ROI • Customer satisfaction • Cost effectiveness per channel of acquisition or

communications • Participation rate • Program contents • Brand preference overtime against market index • Incremental sales for up-sell, cross-sell, replacement and

digital services • Referral’s rate (How likely would you recommend to your

friends?) • Incremental sales of the program Vs. regular sales

So don’t forget the golden rule

What they give us>=What we give them THE EXPERIENCE

\ THE IMPACT

Impacts to the organization

Gamification

Utility appsVideo

QR Code

rich media

e InteractiveCONTENTSmore platforms

more rich medias not ownable by brand

“Data is the new oil or the internal “gold mine” that can’t be ignore.

BIG DATA

Customer Database

Behavioral tracking

Contextual

Buying pattern

preferencesloca

tionsocial

Idialog

CUSTOMER CENTRICS• Listen more to consumers via social listening

• Adopt more of CRM practices across all functions using digital as channel

Final thoughts…• “Success” with Customer Engagement Program will

depend upon having clear, measurable objectives which are implemented and followed regularly

• This requires more than a scorecard approach -- findings must be analyzed and changes implemented to continuously optimize the process

• Short-term and Long-term “wins” are always possible • but…most of all, you have to love your customers and

understand them enough to engage with them with great passion.

Thank you

Linkedin: th.linkedin.com/pub/supavadee-tantiyanon/8/13/199/

Measurement Matters

Marketing