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The Customer Experience: Delivering in High Definition
Mark SwensonDirector, Customer Management PracticeTeradata Europe Middle East Africa
Teradata Confidential; created by Mark Swenson; slide 2
agenda
• opportunities for impacting the customer experience
• classic: new types of event-based marketing
• automated: real-time next-best offers
• interactive: social media
Teradata Confidential; created by Mark Swenson; slide 3
little decisions add up
“We judge leaders by how well they make big, strategic decisions. But
corporate success also depends on how well rank-and-file employees
make thousands of small decisions.
• Do I give this client a special price?
• How do I handle this customer’s complaint?
• Should I offer a seat upgrade to this passenger?
“By themselves, such daily calls – increasingly made with the help of
enterprise decision-management technology – have little impact on
business performance. Taken together, they influence everything from
profitability to reputation.”
– Frank Rohde, “Little Decisions Add Up,” Harvard Business Review, June 2005
Teradata Confidential; created by Mark Swenson; slide 4
High value customer with 3 delayed flights in the last 6 trips
Wife didn’t get special treatment even though hubby flies 100k miles per year
Reading light malfunctioning
Elite flier in economy whilst on leisure holiday package
Passenger qualifies for gold tier with this flight
Involuntarily bumped to this connecting flight
After tight connection, not sure her bag made this flight
You could’ve said something…
Teradata Confidential; created by Mark Swenson; slide 5
You said too much…
browse city pair online
starts booking; abandons
email: 15% offer
visits travel agent
mailer with 20% off
Foursquare check-in
mobile: 25% coupon
online offline mobile phoneFri 17:00
Sat 9:00
Sat 11:00
Sat 11:15
Sat 9:10
Groupon €25 offerSat 8:50
contact optimisationa contact optimisation engine could have automatically filtered these contacts by type, strategy & recency of other contacts,
across channels, allowing only the best one(s) to go out
Teradata Confidential; created by Mark Swenson; slide 6
a leap in thinking
legacy CRMManage
My data for your benefit
You contact me when you want, NOT when I want
You want to control the conversation
Your staff are trained to help you – not me
today’s CRMEngage
My data for my benefit
I will engage when I want to
I control the conversation
Your staff are geared up to help me, and also you
trust me
empower me
engage me
Teradata Confidential; created by Mark Swenson; slide 7
latest step in the marketing continuum
List-basedselections
Models &Profiles
Events &Next-Best
Offer
1980 1990 2000 2010
InteractiveWeb
Marketing
2010+
Velo
city
& R
OI
Active MarketingEco-System
Teradata Confidential; created by Mark Swenson; slide 8
from manage to engage
List basedselections
Models &Profiles
Events &Next Best
Offer
1980 1990 2000 2010
InteractiveWeb
Marketing
2010+
Velo
city
& R
OI
Active MarketingEco-System
CRM “Manage Me” now:
“Engage Me”
now: “Engage Me”
Teradata Confidential; created by Mark Swenson; slide 9
provide a customer experience
• Customers will have an experience
• Customers leave behind clues in their behaviour
• Does the customer see a picture similar to what you see?
• Does your competitor see the customer better than you do?
Teradata Confidential; created by Mark Swenson; slide 10
high definition customer engagement
Help me with my travel experience.
I’ve shown my loyalty to you – how will you show your loyalty to me?
I share my travel experiences with my friends.
PROACTIVENESS• I know you have my data. Why don’t you use it?• Why can’t you see what I just did on the web?• I complained, but nobody did anything.
RELEVANCE• What can you offer me?• What am I entitled to?• Don’t you know how much I fly?
MY WORLD• I like you enough to friend you.• I’m in control; I say what I think to anybody online.• I trust what my friends think more than your
marketing department.
CLASSIC• event-triggered marketing• web data, unstructured data
AUTOMATED• next-best offer• based on real time web behaviour
INTERACTIVE• interactive/social-ready CRM
Teradata Confidential; created by Mark Swenson; slide 11
event-based marketing
Deliver message to any channel
1. Timely
data from channels
2. Define rules for what you
want triggered
3. Link action to trigger
automatically
Shift focus from airline transactions onto the customer
What experiences found in data do
you want to know?
Teradata Confidential; created by Mark Swenson; slide 12
updating your event triggers
you’re likely doing these:• bought ticket without hotel
& car• misconnected last flight• baggage issue • renewed gold• flown this route last 4
Mondays in a row
data required • operations data (missed &
delayed flights, bag issues)• booking data (new travel
patterns)
start doing these:• posts a negative tweet• researches & abandons
same city-pair 23 times• links to Facebook from your
outbound emails• posts comments & reviews• completes survey
data required• unstructured text (emails,
call centre notes, surveys)• online data (abandoned
sessions, searches, reviews)
Teradata Confidential; created by Mark Swenson; slide 13
customers requesting action
• find customers who’ve asked for follow-up in their customer satisfaction survey responses> before: all but a very few of
these requests went unnoticed
• contact these customers to resolve their problem
• improved Net Promoter Scores; 85% say impression of Travelocity is improved
• average customer satisfaction doubled
Teradata Confidential; created by Mark Swenson; slide 14
high definition customer engagement
Help me with my travel experience.
I’ve shown my loyalty to you – how will you show your loyalty to me?
I share my travel experiences with my friends.
CLASSIC• event-triggered marketing• web data, unstructured data
AUTOMATED• next-best offer• based on real time web behaviour
INTERACTIVE• interactive/social-ready CRM
Teradata Confidential; created by Mark Swenson; slide 15
Dynamic Prediction Scores Eligible Offers
24%
17%
8%
Ranking:• Marketing rules• Sudden priority• Expected value• Inventory
1 or moreoffers
1. Fare Sale
2. Upgrade
3. Premium Economy
ineligible
ineligible
ineligible
X
XX
Upgrade
Lounge Pass
Premium Economy
Fare Sale
Holiday Offer
Purchase Miles
Offers
Arbitration Ranks Offers
real-time inbound next-best offer
Business Rules Determine Eligibility
inactive
Campaigns
XUp-SellCampaign
RetentionCampaign
Cross-SellCampaign
Customer
Automatic optimization
Marketing control
I’d like to book a wedding
anniversary trip…
…but we’re on a budget, so I’m also comparing fares on
an OTA.
On site’s promo page browsing
holiday packages-
…but clicks on link to last minute fare sale & views >3
destinations there.
Teradata Confidential; created by Mark Swenson; slide 16
high definition customer engagement
Help me with my travel experience.
I’ve shown my loyalty to you – how will you show your loyalty to me?
I share my travel experiences with my friends.
CLASSIC• event-triggered marketing• web data, unstructured data
AUTOMATED• next-best offer• based on real time web behaviour
INTERACTIVE• interactive social-ready CRM
Teradata Confidential; created by Mark Swenson; slide 17
interactive social-ready CRM
• 80% access social media sites throughout the day• 60% use social media to reach family/friends whilst on the road instead of
email & phone• 39% can't live without social media• 33% log on multiple times an hour
how to start1. Get in on online conversations2. Identify & engage influencers to advocate for your brand3. Leverage digital assets (apps, UGC, links, etc.)
3,000 tweets mention a brand or product every minute
Sheraton, Nov 2010
Teradata Confidential; created by Mark Swenson; slide 18
get in on online conversations
• listen to & engage in online social conversations• feed the treasure hunt mentality thru Twitter• direct marketing use case: create segments from Twitter users:
last-minute buyers, price-sensitive customers, socially-engaged
Teradata Confidential; created by Mark Swenson; slide 19
identify & engage influencers
• customers trust customers – not you• 74% of consumers trust peer reviews over advertising• 64% spend >10 minutes reading product reviews before making a
purchase; 33% spend >30 minutes (– Power Reviews)
• direct marketing use case: put frequent reviewers in a VIP segment
Teradata Confidential; created by Mark Swenson; slide 20
empower influencers to advocate for you
• influencers know & impact other customers
• influencers defined by 4 measures:
direct marketing use case:• create segment(s) of influencers • above or below the line• offer special experiences & offers• test new stuff as early adopters• incentivize them to share w/ others
finding influencers empowering influencers
Teradata Confidential; created by Mark Swenson; slide 21
leverage digital assets
• social assets enable sharing travel plans with friends & linking to social media
outbound emails & corporate web social media travel sharing
sites
Teradata Confidential; created by Mark Swenson; slide 22
KLM interactive magazine
share via Twitter, Facebook, Hyves & email; these links enable capture of social media ID
“book now” link
lets me get
involved
Teradata Confidential; created by Mark Swenson; slide 23
publish & leverage digital assets
direct marketing use case:
• link to FF acct• enable reviews• source data into
data warehouse• analyze data• define event
triggers for customer service opportunities
• identify frequent reviewers & influencers
Teradata Confidential; created by Mark Swenson; slide 24
my data for my benefit
example: Wells Fargo My Spending Report
• track where I’ve been• collaborative-filtered recommendations• make aspirational w/ FF points; “get here with
just 4,000 more miles”• easy booking; “stay where I stayed last time”• create wish-list for where you want to go
Teradata Confidential; created by Mark Swenson; slide 25
KQ73VR$1530
M7QQ3Z£122
B27MNP€727
instead of seeing this:
LP69BJTL 455
AMS05P¥14550
Teradata Confidential; created by Mark Swenson; slide 26
re-earned platinum on
this trip
booked online for first time
typically business traveller, but
leisure flier today
see customers in high definition
upset she had to pay change fee
has now taken this flight every Monday
for 4 weeks
Teradata Confidential; created by Mark Swenson; slide 27
It’s all about the data…Teradata
simple intelligent engaging
cost efficient high value-add differentiation
teradata.com/customer-managementMark Swenson, Director, CRM COE EMEA
[email protected], +31 6 4188 1166