Today, organisations have reached a pinnacle of maturity in CRM, meaning they have collected enough profile and transactional data on customers. On one hand organisations need to rethink how to make this treasure trove of multiple data sources meaningful and more valuable to drive differentiation and brand value. On the other hand consumer expectation is increasing the pressure on organisations to:
- Satisfy demand instantly.
- Provide more personalised service.
- Engage on their terms, wherever that maybe; online, face-to-face or mobile.
- Improve the quality of the user experience.
What is stopping organisations from meeting the expectations of the intelligent customer? I am asked this often, and primarily, it's a lack of leadership vision, analytics strategy and executive sponsorship. These are critical to a business moving forward with more than just a customer-centric vision - to actually serve the customer. Next up is a business model that arms leaders with the right processes and infrastructure to support the vision. Analytic talent is also key - knowing what to analyse and how to quantify the ROI further cements the ongoing success and longevity of retaining the right customers.
Bridging the gap to meet consumer expectation
Banking customers demand service providers deliver on real-time mobile transactions with fraud prevention and not just detection; that credit risk checks are instant for loan approvals; that they never encounter an empty ATM when withdrawing cash, even while overseas. Telecommunication customers expect providers to reward loyalty with relevant offers, and not to issue bills for services they cut off months ago. Retailer customers expect to have what was advertised in stock. Some leading brands are certainly addressing these demands through customer intelligence.
- Expedia understands customer lifetime value through relevant offers, resulting in increased conversions.
- Globe Telecom’s strong customer focus helps them understand customers well enough to know what they want and this has led to some impressive results. Generated more than US$42 million in incremental revenues by micro-segmenting marketing campaigns; reduced churn from a double-digit rate to a best-in-class rate of 5 per cent for prepaid customers and 1.65 per cent for postpaid.
- Using SAS for Customer Experience Analytics, Lotte can now identify the causes of online shopping-cart abandonment, resulting in a first-year sales increase of US$10 million.
- DBS Bank reviewed the credit application process and identified where the process could be optimised to reduce time to approve.
Many companies would admit they are nowhere near orchestrating insights across the organisation to predict, create and pre-empt value for increasingly savvy customers. I am talking about more than measuring marketing campaigns, single customer view, segmentation or listening to customers. It's about the next step - how companies use the intelligence to improve the customer experience, and equally important, how this is operationalised. Adding to these big challenges is the myriad of new, largely unstructured, data sources; social media text, call center logs, survey responses, email, loan applications, service notes, and warranty claims. The obstacles have nothing to do with lack of technological advancements. However the reality is that data is managed in a platform that was designed for static storage and reporting.
Jim Davis, SAS Chief Marketing Officer, offers some advice on how to combat these issues. The sooner companies realise that they are at the mercy of intelligent customers, the sooner they will be on the path to evolving their customer intelligence strategy to benefit this new breed. Profitable growth is a happy byproduct of the right customer intelligence strategy.
Over the next few weeks we will explore this space, and take a deeper look into the consumers’ expectations, the urgency around how companies are innovating to deliver customer delight, and explore the skills and capabilities needed to meet and exceed expectation.
Question: What's holding you back from delighting your customers?