What is Customer Science - And Why Should You Care?

Where Big Data Meets CRMwww.ustechsolutions.com

Ian Tomlin

What is Customer Science?

www.ustechsolutions.com

Customer Science is the intellectual and practical activity encompassing the systematic study of the structure and behavior of customers through observation and experiment.


Key Events In The Evolution of Customer Science

• ‘Marketing’ (Michael Porter principles on market competition)• One to One Marketing (Don Peppers and Martha Rodgers)• Introduction of Enterprise Customer Relationship Management (Tom

Siebel)

• Arrival of eCommerce• Arrival of Digital Marketing and SEO• Arrival of Social Media

• Evolution of Data Investment Management (Amazon, Google)• Arrival of Cloud Computing

• Emergence of Big Data• Arrival of Cloud CRM Data-Marts

1980

1990

2000

2010


What Customer Science Means to Business

• When an enterprise can generate income (shareholder value) by repeatedly servicing a customer need it’s likely to be successful!

• But customer needs change over time…• And there’s no such thing as a typical

customer…• Or a typical ‘market’ (aggregation of

customers)


You Need Customer Science To Learn…Who your customers are

What they likeWhere they are

When they make a buying decisionHow to engage them

Why they will buy


Strategy

• Identify blue ocean opportunities to enter a new market to service an unmet customer need

• Improve likelihood of strategic success by making decisions based on a paucity of customer insights and facts rather than conjecture

Quality

• Improve the customer experience, satisfaction and retention by delivering more value to customers more often

• Stop treating all customers in the same way – deliver personalized, event-driven, location-centric tailored experiences

Profit

• Sell more products and services to customers by delivering more personalized experiences at the right time, right place and right price

• Reduce costs by smarter production and supply-chain methods on-demand/at point of need

Efficiency

• Expose sub-optimal processes that impact on customer experience

• Optimize sales and marketing approaches ‘in the contact area’

• Reduce the number of actions occurring in the enterprise that contribute little to customer value

Outcomes of Employing Customer Science

6


1. Create

Hypothesis

5. Apply

Learning

Lessons

4.

An

aly

ze

Ou

tcom

es

2. D

esig

n Te

st

3. Execute / Discover

Draw out OutcomesShare findings through charts, maps and visualizations

Act on What MattersMake changes to processes

Design a Query / Harvest Insights

Explore customer insights to observe

structures and behaviors

Be CuriousThink about an

aspect of ‘customer’

structure or behavior

Test Ideas/Seek FactsFind answers to questions

The Life-Cycle Of The Customer Scientist

7


Let’s Face It, Customers Don’t Always Want To Offer Their Opinion

• It’s rarely easy to gain customer opinions, gather interests and unmet needs• Customers tend to give opinions when

they are extremely happy or extremely unhappy• They’re more likely to share opinions

when they’ve had an unhappy experience• Unless well structured, customer

research can lead to the wrong conclusions and feedback can be misinterpreted• The customer is not always right!


The Tools of the Trade

Cloud Data-Mart

CRM Website / Socialsite

Back-office Systems Intranet Project/HR

Systems

Data Diagnostic

Dashboards

Location-Based

Customer Analytics

Product Analytics

Competitor Analytics

Cloud Data Mart

extracttransform load

cleanse


Contributory Methods

Customer Segmentation

Outcome Driven Innovation

Focus Groups

Crowd Sourcing

Value Chain Mapping

Issue Signature AnalysisSurveys

Web Analytics

Social Analytics

Balanced Scorecard

Blue Ocean Strategy Mapping

BCG Analysis

SEO

UI Design

Information Design

Hypothesis Design

Reporting

Clustering

Prediction Test and

Learn


Introducing Cloud CRM Data-Marts

A Cloud CRM Data-Mart is a ‘big data’ cloud computing information platform equipped to manage the end-to-end life-cycle of creative innovation, supporting the key stages of:

• Creating Hypothesis• Harvesting Data• Analyzing and Interpreting Data• Clustering Customers• Building Tests• Forming Impact Predictions• Iterating Tests• Turning Tests into Outcomes

Hypothesis

ClusteringCrowd-sourcing

Operational Analytics

Location awareness

ETLCloud

Situational apps

Test


Impact of Cloud CRM Data-Marts

Manages the Life-cycle of Customer Science: Builds (‘single’) landscape views of

customer insights– Federates data from all sources– Automates data harvesting from disparate

data sources – Removes manual data transformation and

cleansing tasks– Enables clustered views

Adds research/data gathering tooling Adds visualization, mapping and analytics Adds situational applications to act on

learning lesson


Deep Dive Into Customer Segmentation

Clustering customers into segments is useful for customer scientists to appreciate behaviors and structures that may exist and remain hidden when there is so much customer data!

Segment by one or more of the following:

• Likes and interests• Purchases• Unmet needs• Buying behavior• Affluence• Sales channel/procurement source• Social ties/strength of ties• Skills, education or associations• Origin or purchase source location


Associated Skills & Disciplines

• Marketing Manager• Market Researcher• Marcomms Manager• CRM Supervisor• Database Architect• Data Analyst• Campaign Manager• Product Manager• UI Designer• SEO• Digital Marketing Analyst• Brand Manager Need to source the talent?

Call USTech Solutions - to source the professional, creative and analytical talent your business needs on-demand

Thank You.

USTECH SOLUTIONS LTD25 Canada Square, 33rd FloorLondon, United KingdomE14 5LQ

t. +44 (0) 207 0431940m. +44 (0) 7764 220954www.ustechsolutions.com


Thank You.

USTech Solutions provides big data skunk works teams on flexible interim contracts that dramatically reduce the costs associated with developing a Cloud CRM Data Mart. Businesses that see opportunities to explore the rewards of customer science and the application of big data can HIRE their own skunk works team at very low cost as an alternative to internally sourcing talent and IT platforms.

USTECH SOLUTIONS LTD25 Canada Square, 33rd FloorLondon, United KingdomE14 5LQ

t. +44 (0) 207 0431940m. +44 (0) 7764 220954www.ustechsolutions.com

Date post:	22-Jan-2015
Category:	Business
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