InsightIQ Blog

The Social Network Cashes In and Analytics Plays a Role

roman_lenzen@csgsystems.com (Roman Lenzen) — Tue, 15 May 2012 12:00:00 EDT

Facebook is going public this week with an initial valuation approaching $100 Billion. That’s a lot of money - is it a fair valuation? I’m not an IPO expert so I will not debate the valuation but I do know that a site approaching a billion users per month, where the users are very engaged and interconnected with others on the site, is valuable. Furthermore, the data generated by the users is a goldmine if ‘data mined’ correctly in order to increase user relevance and continue to bring communities together. And web sites such as Facebook & LinkedIn are doing a very good job tapping into their user data through techniques such as social network analysis.

Traditional customer analytic environments can benefit from those Social Network Analysis (SNA) techniques as well but what is SNA and how can it be used within traditional customer analytic environments? SNA, specifically SNA applied to people networks, is a type of analysis which determines interrelations between individuals and groups. These analyses may be used to:

determine ‘influencers’ or those individuals who show the greatest influence on the network
determine ‘connectors’ or those individuals who, if they left the network, could have the greatest negative impact
determine groups / clicks that have the greatest influence on the full network

SNA can enhance your customer analytics environment through increased insight. Knowing who your influencers and connectors are is the first step. Metrics created during the development of social network analyses may be used directly within customer analytic environments. Those SNA metrics include -

Degree: the number of contacts / friends in a group.
Closeness: measures if an individual is an outlier or in the middle of the pack.
Between-ness: measures how interconnected an individual is to the full universe
Influencer score: Overall Influencer scores are also available

Once an SNA is complete the output may be applied to the individual users and then used to enhance many strategic customer-engagement tactics including -

Creating additional cross-sell strategies based on a customer’s SNA connectivity and group
Enhancing retention knowledge and retention strategies based on an individual’s connections and group relationships.
Determining group associations, and influence on other groups, provides insight into investment decisions such as web site design and marketing treatment cadence
Enhancing customer value models given influencers have a greater direct impact on overall customer value including current value, potential value and lifetime value.

Facebook and LinkedIn have shown that SNAs provide incremental relevance to their users, which translates into bottom line value. As these SNA techniques become well-known by more traditional customer analytic professionals, SNA will become a common analysis technique throughout the customer analytic community.

Inside ESPN’s Cross-Platform Strategy

julie_baker@csgsystems.com (Julie Baker) — Mon, 14 May 2012 12:00:00 EDT

Digiday published an article recently that focused on the care that ESPN takes to publish in a fashion befitting the medium. How fans consume the magazine is drastically different than their television viewing behavior, than their online consumption patterns, than their mobile and tablet usage. This is fundamentally understood in the industry but few have the data to drive a publishing strategy that supports it. Even more powerful is ESPN’s understanding of behavior across platforms. Collective consumption patterns, drivers, preferences. Simultaneous usage patterns in particular are critical to driving their 2^nd or even multi-screen fan experience on big event days. This all adds up to their ability to champion a game-changing industry metric… total time. First and foremost, it delivers on their promise to their fans – to serve them anytime, anywhere (and I’ll add, with critical context). But it also delivers significant competitive advantage – to serve the ad community an engaged and valuable audience across platforms, “appropriate for the time, space, and screen they're accessing.” Which translates to performance and a win for both users and advertisers.

Damage Control: The Marketing Metric You Forgot About

sakina.walsh@csgi.com (Sakina Walsh) — Wed, 09 May 2012 12:00:00 EDT

With a combination of business intelligence and analytics, you may have figured out the lifetime value of a customer. If you’re using customer data wisely, you probably also know the highest acquisition cost you’re willing to pay, or even how much to spend to re-engage a customer that appears to be going latent. But here’s a metric you likely haven’t established: how much are you willing to pay for the damage control of a single customer?

In more ways than one, the voice of the customer is stronger than ever and businesses have had to face a paradigm shift. There are businesses that get it, like Zappos and Amazon, which continually reign over customer service and satisfaction. On the other end of the spectrum, companies that focus their efforts only up to the point of sale are being rudely awakened by a stark new reality: there’s no escaping an unhappy customer. With the internet at their fingertips, each and every customer can create staggering ripple effects that can do major damage to a brand. In the past, a miffed customer had little recourse outside of venting to his or her friends and family. This did some word-of-mouth damage, but it was generally contained. But today, a customer can instantly tap the internet and announce their dissatisfaction to an endless sea of consumers. One tweet or review can quickly go viral, accelerated by web-savvy competitors keen to exploit their rivals’ woes in whatever way they can (I once a heard a story about a repeat customer that tweeted about a negative experience with a florist. Soon after, they were contacted by 1-800-Flowers, who offered to make their delivery for free and offered a discount for their next order. Guess who lost a regular customer, and who gained one?).

So how much harm can a single customer actually do? Social virality is just one aspect of how quickly the damage can snowball. Customer reviews—which consumers trust 12 times higher than brand-communicated information—can live on the internet as a visible reference for years. Even one bad enough review out of a pool of several can lower the overall score by a significant margin over a competing product—with a measurable impact on sales. Furthermore, customer comments may appear in search engine results each time a brand or product is queried. Businesses can do little if anything about these comments, even if inaccurate, while search suppression efforts are both costly and lengthy (and never guaranteed).

With its effects both unpredictable and uncap-able, any smart business will recognize that customer damage has to be prevented, not controlled. A proactive strategy toward customer service, return policies, and quality are all helpful, but the bottom line is that businesses must truly consider the entire customer lifecycle, not just the sales cycle. If a company’s products or services don’t live up to customer expectations months or even years down the road, the internet will undoubtedly reflect it. With the ability to compare competing products so quickly and easily online, even marginal differences have a big impact on sales.

Of course, it isn’t all gloom and doom. While the evolving powers of the customer can put brands in an especially vulnerable position, they work the other way too! An unexpectedly positive customer experience can go viral too, building awareness and pushing sales, while great customer service is paying off like never before. At the end of the day, Google’s tagline sums it up perfectly: The internet is what you make of it.

Can I Take Your Order Please?

niall.budds@csgi.com (Niall Budds) — Wed, 09 May 2012 12:00:00 EDT

We at Quaero are in the business of building state of the art customer marketing solutions. Like any solution builder that puts us in the position of needing our clients' direction on what they want us to build. How we get that direction is the subject of continuous internal discussion and refinement, just as it is across the entire IT landscape. Over the years we have taken different approaches to getting that critical requirements information - everything from a pure "waterfall" approach, where we make the assumption that the client can articulate exactly what they need (at a level of detail), to "Agile" where we start with an ever-evolving "backlog" of needs which change and can be re-prioritized over time. The right answer seems to be a combination of both, and here's why ...

Expecting a client to be able to specify detailed solution needs at the beginning of a project almost never pans out. Even where effort has gone into creating a detailed Request for Proposal ("RFP") document which contains lots of what look like client requirements, we typically find they have been created by a small group of people, often in IT or Procurement, that have not had much, if any, opportunity to engage with their business colleagues and ultimate end-users. That puts us in a tough position. We need requirements so we can build a solution on time and on budget ... but our end-users are not in a position to give them to us. What they mostly have is a sense of what doesn't work today, either in the current solution (if one exists) or in the processes it enables, or both. This gives them a sense of what they want to fix in the status quo but does not lend itself to future-oriented thinking about where their business will be in three years' time and what kind of solution will be needed to support it. What we therefore get as "requirements" with traditional waterfall approaches reminds me of the famous Henry Ford quote ... "if I had asked customers what they wanted they would have told me a faster horse (and not a car!)."

We believe more and more that the key to overcoming this challenge is to help our clients understand what their future world will (or should) look like. That is, where do they need to be in terms of customer strategy, marketing capabilities, processes, multi-channel customer engagement, campaigns, the whole nine yards. That is a business as opposed to a system vision. Once we have helped shape and document that vision we have accomplished a couple of key things ... (i) there will be alignment within the business community on where they are trying to get to, and (ii) there will be a frame of reference within which they can orient themselves to think about more specific requirements. Only when they have that sense of where they are trying to get to from a business standpoint can they really think about what they need, and we believe we need to play a partnership role in helping them to get there.

So no more passive order-taking for us when it comes to requirements gathering. We view the process as being very consultative and, where possible, we try to prescribe requirements based on our deep solution experience. We think that is a good way to develop future-proofed requirements. Do you agree?

Creating Your Marketing Technology Roadmap

jay.keating@csgi.com (Jay Keating) — Mon, 07 May 2012 12:00:00 EDT

If you didn’t attend the Forrester Customer Intelligence Forum held in Los Angeles on April 18^th and 19^th, you missed a great chance to hear William Band define the marketing technology roadmap. The good news is you can get an overview from Band’s blog on the Forrester website. I’ll summarize a few points here that aren’t covered directly in his blog.

At the conference, Band discussed leveraging swim lanes for planning. He recommends four parallel tracks along your planning continuum:

Business strategies mapped out over your planning horizon.
Business capabilities needed to meet your strategies.
IT Projects which will enable business capabilities.
Investment horizon required to fund your initiatives.

Also, consider creating a roadmap that will evolve iteratively as your business evolves. By no means will your plan remain static, especially if you’re thinking in terms of a multi-year horizon as you should be. With that in mind, establish the roadmap with declining degrees of certainty over time – committing to higher certainty for objectives within your current budget cycle, and allowing for lower certainty around planned commitments in the out years. For example, if you already know that you will be migrating to a multi-channel optimized marketing automation solution in this fiscal year -- timelines are set, staff is aligned and the costs are allocated in your budget -- treat that as a high certainty item. In contrast, you can’t be as certain about a desired investment in a social listening platform scheduled to occur 24+ months away. Establishing degrees of certainty helps you communicate a plan that is intended to change; a directional plan that also evolves with your business.

Do you already have a planning process and marketing technology roadmap that incorporates Forrester’s guidance?

Are Mobile Carriers Playing Fast and Loose with Their Customers?

naras@csgsystems.com (Naras Eechambadi, PhD) — Fri, 04 May 2012 12:00:00 EDT

Recently I posted a blog about the need for mobile operators to adapt their marketing as their customers’ data consumption and usage changes dramatically with the continued increase in the penetration of smart phones as well as the introduction of super-fast 4G networks which make downloading of HD movies and other large data files much quicker.

In a recent Sunday edition, the New York Times ran an interesting article making much the same point – with a slight twist. The point of the NYT article was that most people understand what they are buying when they buy minutes of talk time per month or so many text messages per month as part of a plan, but they do not know what exactly a gigabyte is, nor is it always clear to them when they exceed their monthly plan allocations. This is a prescription for sticker shock and customer outrage and complaints down the road. The carriers quoted in the article mostly responded by saying that customers can figure out where they are on their plans by logging on to their website. Seriously? Do they know how many of their customers actually do this? I am sure it would be easy for them to find out. My guess would be – not too many.

A more customer friendly experience would be for the carriers to monitor usage (which is easy to do) and communicate proactively on an as needed basis with each customer as appropriate. After all, these are supposed to be communication service providers! How about periodic messages after major downloads or when potential thresholds are reached – for example if you are on a pace to overshoot your monthly plan or when you reach certain user defined thresholds such as 90% of your monthly allowance? Perhaps this can even be combined with offers to upgrade the plan either for that month or for the length of the contract. They could even ask the customer for their notification preference when signing up for a data plan and permit them to alter these preferences online, through the use of preference centers. Anything that gives customers more information and control would serve to enhance the customer experience, both perceived and real. It will also improve customer satisfaction and, probably, long term revenue and customer value.

Or would the carriers just prefer that customers be kept in the dark in the hope that they exceed their plans and run up really big bills? Is it possible that they really are that myopic or have they just not thought through this?

What do you think?

The Real Cost of Your Facebook Profile

jennifer.roneker@csgi.com (Jennifer Roneker) — Thu, 03 May 2012 12:00:00 EDT

Ever since Facebook filed for its IPO back in February, there has been a steady stream of media reports and articles complaining that Facebook is cashing in on their users and intends to “sell their data." I’ve personally gotten messages from friends and even my own cousin that they are leaving Facebook because they don’t want their information used as profit for the company.

Newsflash – this is nothing new. Facebook has been leveraging user's information for years selling targeted media to advertisers at a premium. In fact, 85 percent of Facebook’s $3.7 billion in revenue for 2011 came from advertising. Yes – you read that right – $3.7 billion from those pesky right hand margin ads that always seem to know that I’m on the hunt for that perfect pair of heels from Zappos and lets me know that Nordstrom is having a Spring dress sale. Working in advertising and marketing for many years I know the ins and outs of how it all works but I was bewildered by all those who were offended by Facebook's “sneaky and greedy plans” – how did those folks think a free-to-the-users service made money?

Part of the uproar is likely attributed to the typical initial reaction – “how dare they sell my info!” Well – let’s breakdown what exactly is being sold – your “profile” info, not your PII (personally identifiable info). For my cousin and the other recent Facebook defectors – here’s a breakdown of what that means.

Say an advertiser would like to target females in the Boston area who like to travel, Facebook matches those ads to the appropriate audience and voila – ads for the Bahamas with special deals from Boston start appearing. Your profile data is made up of all the little things you’ve added to your Facebook profile – your gender, your relationship status, where you live, where you went to school and how old you are. And all those companies you “liked” and all those interests you added to your profile such as books you’ve read, music you like and even your favorite sports teams (go Red Sox!). The advertiser knows how many people Facebook targeted for their ads to appear, how many responded, etc. but it’s all in aggregate – it’s personally anonymous. The advertiser never knows your name, your email – that info is Facebook gold and they are hanging onto it – for now anyways. There is speculation that Facebook will eventually sell customer info outright – I for one don’t believe they would dare alienate their 845 million meal tickets, especially the 483 million unique meal tickets that visit every day.

Facebook is free – to me, to you and any other person who’d like to sign up to get an account. What you get for this free account is the ability to keep up with friends and acquaintances, to follow companies and causes you “like”, share photos, make mindless comments and even play Farmville till the cows come home.

It’s free because you pay with your data – data is currency which Facebook accepts as payment for your account. So that’s the trade-off for getting something for free – your data – to be leveraged to target ads to you. That’s it – for now anyways. So enjoy your newsfeed, the status updates from people you haven’t seen in 10 years and challenge your friends to never ending games of Words with Friends. But keep checking those privacy policy updates to ensure your Facebook account isn’t costing you more than you think.

Use Analytics for Good, Not Evil...

mbb@csgi.com (Michelle Boockoff-Bajdek) — Wed, 02 May 2012 12:00:00 EDT

...or, what I learned at Forrester's Customer Intelligence Forum this year.

I'm sure by now you've seen the New York Times piece on Target and the power of analytics; you know, the one that describes how the mega retailer knew a 16-year-old girl was pregnant - and sent her targeted offers related to all things baby - before her father even knew? Or perhaps you saw Stephen Colbert's take on the subject?

Finished with the piece? Then stay for a moment and let's focus on the warning for marketers offered by this entertaining, but still alarming article: customer analytics can be a slippery slope. Sure, customer data can be mined sixteen ways to Sunday to deliver rich insights that predict what people will buy and when, thus helping marketers deliver relevant, timely offers that grow customer value. That's what Target did quite well. But does it start to border on Big Brother? Consumers believe it does.

In a presentation at Forrester's Customer Intelligence Forum, Dave Frankland, Vice President and Research Director for Forrester made the argument that CI professionals - those individuals who help their organizations adapt to the age of the consumer by providing better consumer insight and interaction and navigating the muddy waters of data privacy and security - must deliver more than just analytics. They are customer stewards and therefore need to think about the customer, not just the data.

Why? Because consumers don't trust companies that gather and use information without a) explicit permission or b) full transparency.

Dave's colleague, Fatemeh Khatibloo believes we have entered the Age of the Consumer, which means the rules of engagement between brands and consumers have to change. Consumers want to know what you're doing with all of that data - particularly as it relates to privacy, security, data portability, transparency and economy (value).

As marketers, if we fall short, we run the risk of consumer backlash, brand erosion and becoming fodder for late night Comedy Central talk show hosts. To get it right, Dave Frankland believes you must follow these four steps:

Build a customer-oriented strategy that really does put the customer at the center. It's important to remember that consumers are people and emotional context is as important as behavioral and/or business context.
Tie customers to the brand. Make sure that your customers understand and relate to your brand ethos; it will help you drive the value exchange.
Hire the right people. Statistical skills are important, but marketers must have (or find) customer strategists who can transform customer insights into programs that are developed with people, not statistics, in mind.
Build the technology to enable the right decisions. According to Frankland, decision management [must be] centered on [a] customer context." That means that marketers must think outside of marketing to every opportunity the brand has to engage and interact with customers.

Look, I still love Target, despite the chill that ran up my spine after reading the NYT article. Even as a marketer, however, I still think twice about to whom and how frequently I give out my customer information. It is a currency nowadays and I'm inclined to provide only when I believe there is a true value exchange.

For marketing and CI professionals, I think the message is clear: think beyond the statistics; remember that customers are people too. Do you have a scary or alarming customer experience to share? Or have some thoughts on the use of customer data for communications purposes? Let me know - either in the comments section below or via email. Look forward to the discussion.

Cool or Critical? A Reflection on the Forrester ML & CI Forums

susan_connors@csgsystems.com (Susan Connors) — Wed, 25 Apr 2012 12:00:00 EDT

I loved the theme of the Forrester Marketing Leadership & Customer Intelligence Forums last week in LA and believe the Forrester team delivered. With a packed agenda of case studies to help marketers put all the parts together to deliver a single, personal brand experience to each customer, the sessions were tailored to a variety of marketing perspectives.

It’s not an easy job for Forrester, and more importantly not an easy job for a marketer given the competing demands within an organization, the lack of unlimited funds, and the ever changing landscape of channels and technology.

As I review my notes, I gravitate to a comment made by Cristina Bondolowski from The Coca-Cola Company. One of the many secrets of the brand’s success over the last 125 years is the concept of “constructively discontent”. As marketers, I agree with Cristina and believe we should also be challenging the results, asking the tough questions and critically examining our relevance to today’s consumer. Richard Eversen’s session made this come to life with the idea that Customer Intelligence must be combined with Market Intelligence (CI +MI = ?). You must make the connection of what customers think and feel with what they are doing to drive results and ultimately revenue. Lastly, Marc Rosenstock of Kimberly-Clark summed it up with practical examples of Listen, Learn, Comprehend and Speak when developing and utilizing email best practices that help close the gap across marketing channels.

The Quaero cake pops and treats were COOL but my CRITICAL takeaway from the conference was Dave Frankland’s summation of “How to Do it Right”….

Keeping customer strategy oriented and driven from the top of the company
Tying customers to the brand’s North Star – vision, mission and value
Changing organizational skill-sets to be analytical with an emotional touch – hiring customer strategists
Utilizing technology that keeps up with customer decision management.
Staying centered on customer context that respects their emotions and preferences.

I’d love to hear what you think is critical for marketers to do to create engagement in the age of the customer.

Embrace Your Digital Shadow

julie_baker@csgsystems.com (Julie Baker) — Tue, 24 Apr 2012 12:00:00 EDT

Alexis Madrigal published an article “My Digital Shadow” in The Week last Friday describing in great detail the subterranean data collection and exchange that occurs where with every visit over a dozen companies are logging your activity, dynamically placing ads tailored just for you, and adding all of your consumption information to what she described as an “ever-growing online file about you.” We work with digital data every day and I can assure you there is no lengthy historical, Hoover-like file on even your anonymous online behavior. First, the average online cookie only lasts 45 days. Second, most companies don’t hang on to click data for longer than the life of a campaign unless they require seasonal or annual performance comparison. These two basic factors alone should put your mind at ease when contemplating the extensive digital tracks you may or may not be leaving behind.

She went on to say that "never before... has so much data been gathered about so many people for the sole purpose of selling them ads". While ad sales is presently the primary revenue model, many media companies and online publishers collect and analyze behavior and consumption patterns for the purposes of serving the most relevant content, to inform product development, to improve 2nd and 3rd screen experiences, drive usability, make decisions about programming, and yes, to sell and serve relevant ads. Online audiences expect some level of personalization in both their content and ad consumption. That's the "get" in the "give/get" digital equation. If you are being served an ad regardless, it stands to reason that the more relevant to your current interest the better. It’s what allows Zappos to follow you around with a discounted offer on that highly inessential yet brilliant bright orange Kate Spade clutch you just left in your cart (as an example). As long as that data is responsibly collected and applied, both users and marketers should benefit. So I say, embrace your digital shadow. It provides publishers and marketers information on how best to improve your digital experience and might just assist in the justification of unnecessary accessories from time to time.

Forrester's Marketing Leadership & Customer Intelligence Forums 2012 - Stop By and Say Hello!

gina.lemay@csgi.com.com (Gina LeMay) — Mon, 16 Apr 2012 12:00:00 EDT

What keeps a marketer up at night? We’ll certainly find out this week at Forrester’s Marketing Leadership and Customer Intelligence Forums. Scanning the agenda, there are some common themes: big data, the impact of digital, and the new age of customer control.

What’s interesting though is that these topic areas are not new, but continue to be pain points for marketers. Is this because the landscape continues to evolve too rapidly? Because organizations don’t have the right processes or infrastructure in place to take advantage of what is available? Or, is there just too much to juggle in the course of a day and you’re simply doing what you can do? I believe the answer is d: all of the above.

It is likely you’ll never be able to do everything – few organizations can - but what if you could drive 10% or 30% more value to your customers and to your organization? That's a great topic to discuss and an important one to you – the marketer. If you’re ready to have the discussion, come visit me at the show. You can find me at Booth #210. And ask to take our ACE survey, which helps customer intelligence and marketing professionals gauge the sophistication of their customer engagement programs.

See you there!

Forrester Forum + CI Readiness = Comfortable Shoes?

susan_connors@csgsystems.com (Susan Connors) — Thu, 12 Apr 2012 12:00:00 EDT

As I prepare for the Forrester Forum in Los Angles next week – deciding on what sessions I’ll attend; what customers and prospects I hope to connect with; how to drive curiosity and engagement at our booth, and a host of other details, I can’t help but think about what shoes I’ll pack since I’ll be on my feet for two full days at the JW Marriott. As you know, it’s hard to be engaging and enthusiastic when your feet hurt. Some believe the origin of the term “benchmark” was from cobblers marking a customer’s foot size on a bench. They would place someone's foot on a "bench" and mark it out to make the pattern for the shoes. Benchmarking is used to measure performance using a specific indicator resulting in a metric of performance that is then compared to others. So in the spirit of the Forrester conference theme, how do you know how you compare to other marketers to create engagement in the age of the customer?

Quaero has developed a proprietary self-survey designed to help marketing and CI professionals gauge the sophistication of their customer engagement programs. Available at the Forrester Forum in the Quaero booth (#210), the Accelerated Customer Engagement (ACE) assessment tool asks questions across three core dimensions: 1) Strategy & Analytics; 2) Data and Technology and 3) Organization & Process. Participants will receive four different scores; an overall customer engagement program score, as well as individual scores for each of the three dimensions.

CI professionals recognize that customer insight is critical to the development of successful customer interactions that deliver maximum value to an organization. This requires a unified understanding of the customer across the organization. Using the ACE tool, you’ll have your own personalized checklist of where to focus within your organization in key areas of consideration:

Strategy & Analytics

Campaign goals
Customer segmentation
Lifetime Customer Value

Data & Technology

Data integration and sources
Marketing automation
Campaign management

Organization & Process

Executive advocacy
Organizational structure
Alignment of goals and metrics

Most companies have built some customer intelligence capabilities but don’t understand or realize their benefits. Let Quaero help you understand your “mark” on the customer engagement ”bench” and identify the right pair of shoes to walk the CI road. If you’re not in attendance at the Forrester Forum, email or call me for more information on how to participate in ACE.

Moving Toward Integrated Marketing: Considerations Beyond Campaigns

sakina.walsh@csgi.com (Sakina Walsh) — Tue, 10 Apr 2012 12:00:00 EDT

Skim through any current collection of marketing best practices and marketing integration is sure to be a central theme. So while the concept of a cohesive multi-channel marketing strategy is hardly new, many if not most organizations have yet to fully adopt this best practice. Newer companies have the advantage of building their internal processes to fit the post-digital landscape, but for most firms, integration is a massive undertaking requiring complex transformation across multiple layers. The deepest challenges include siloed organizational structures both inside and outside marketing; conflicting objectives across business units; and the absence of the right tools and data to effectively integrate campaigns.

If your organization is making the move toward marketing integration (kudos!), it can be difficult to know where to start. It is important for midmarket and large businesses to recognize this cannot be a quarterly or annual “project”; there needs to be a long-term strategic focus championed at the C-level. Often, companies take too tactical an approach to the transformation process, overlooking fundamental change management issues that are far weightier than the technical side of the matter. As you begin down the path toward marketing integrations, it is crucial to consider the following:

Objectives & Incentives – Is your organization divided into different product departments? How about functional departments? Who manages each channel within the marketing department? Many firms struggle with integrating campaigns because of mis-aligned or even competing goals, incentives and budgets. For example, one team may have product or sales goals, while another has acquisition or profit goals. Or managers may each be fighting to get the biggest chunk out of a shared bucket of marketing dollars to meet quotas or, let’s face it, because they feel it affects the perception of their own significance. This makes it impossible for them to come together and think about creating the best multi-channel campaigns. Marketing integration requires a central planning structure that will allow all channel and product managers to objectively and openly collaborate—putting time and dollars where it makes most sense for the organization, rather than their own departments. This means breaking down siloes and aligning goals and incentives across departments.

Marketing Metrics & Campaign KPI’s - One of my past clients was a Fortune 500 financial services company where each functional team essentially used its own set of metrics and KPI’s. So while one department was using sales to measure its success, another decided to use profitability. And guess what? They didn’t match up—at all. By spending more money, the first department was able to ramp up its online advertising, resulting in more exposure and therefore more sales. However, sales were increasing at a far lower rate than marketing spend--which made overall profitability decline significantly. Even if they have the same goals, without standard metrics and KPI’s, different departments can interpret campaign success in very different ways. In order for departments to plan campaign strategies together, they must also be using the same metrics and considering all of the same factors.

Process & Technology - After sorting out complex cultural and organizational issues, this may actually be the easiest part! As different departments and channels come together to create integrated campaigns, they will have to find ways to efficiently sync up their processes as well. This requires syncing everything from different lead times to different creative agencies. Inevitably, some processes will require changes, while others may eliminate duplication and create greater efficiencies. From planning to execution to evaluation, merging processes will require shared data and reporting. This will be a challenge for firms where different technologies and software are used by different teams, particularly if they create multiple versions of the customer view. While you’ve probably heard about the “single view of the customer” so many times by now it sounds like a cliché, it really is necessary for current-gen marketing, and will make the already painstaking marketing integration process a much smoother one. Invest in the right tools and technology to make sure different departments, each with their own skill levels, can access the same data and reports. Conduct sessions so that teams can share and even train one another on the various software and business intelligence tools each may be using. In some cases, it will make sense to invest in formal training sessions, but in others, a simple lunch n’ learn session can foster collaboration while delivering the essential education.

Remember, total integration of these organizational components may require successive developments over several years. But despite the inevitably long and arduous transformation process, your organization can certainly begin realizing the benefits of integrated marketing far before its full completion, enjoying fruitful change along a continuum.

As the Data Race Enters a New Phase, Mobile Operators Need to Adapt Their Marketing

naras@csgsystems.com (Naras Eechambadi, PhD) — Thu, 05 Apr 2012 12:00:00 EDT

For some time now, the received wisdom in the wireless world has been that as smartphones and other mobile devices proliferate, data consumption will increase exponentially. Carriers have been trying to fight this battle on two fronts.

On the supply side, they have been investing heavily in new technologies such as 4G/LTE that facilitate increased consumption through faster downloads. On the demand side they have tried to slow the growth through tiered pricing as well as other means to throttle consumption, such as identifying the real data hogs and slowing their downloads, offloading consumption to Wi-Fi networks wherever possible and exploring ways around net neutrality.

Recent reports, such as this one from the Wall Street Journal, on how quickly the recently released iPads (which are enabled for 4G) can suck up data plans, seem only to confirm these predictions of ever increasing data usage. But there is also emerging evidence that many of the actions that carriers have taken to control consumption, including tiered pricing as well as the throttling of extremely heavy users (i.e. band width hogs) is starting to have an impact in slowing down consumption. A recent report from Telco 2.0 highlights this phenomenon by showing how mobile data traffic growth has slowed to a 8% quarterly growth rate, still pretty impressive but a far cry from the 20+% growth rates seen previously. The report predicts an increasing flattening of the data consumption growth curve, as late adopters who are not heavy data consumers adopt smartphones but not the data habits of the early adopters and users.

This has serious implications for mobile communications service providers and their marketing messaging. They may have to pivot quickly from finding ways to slow down the increase in overall data usage to pricing and messaging that is designed to encourage usage, particularly during off-peak times and in less used locations. This is particularly because, as Walt Mossberg’s excellent column in All Things D points out, 4G/LTE is often much faster than Wi-Fi! Many customers may not appreciate being offloaded to Wi-Fi at lower speeds and may prefer being given a choice. On the other hand, overusing the 4G/LTE network is easy to do, precisely because it is so fast but it can also be very expensive – leading to bill shock. So carriers may find themselves in a position where they delight their customers initially only to anger them later. This dilemma is going to place a premium on mobile carriers’ ability to truly understand individual user behavior across time and across geographies. They have to attempt to influence behavior in a positive way, one customer at a time with a view to truly balance customer experience and customer value which may end up conflicting each other at times. I agree with Telco 2.0’s projection that this may result in more loyalty-type schemes that are focused on impacting data usage in specific ways in particular circumstances.

Mobile operators continue to lag behind in their ability to truly tailor marketing offers and pricing schemes to adjust to the needs of their customers. They need to catch up and learn to be flexible, timely and personalized in their marketing. Will operators adapt quickly to the newly emerging trends? What do you think?

Data Privacy and PIDM

brad_ewald@csgsystems.com (Brad Ewald) — Tue, 03 Apr 2012 12:00:00 EDT

It’s becoming more and more apparent to consumers when their behavior and personal information is being used. Just a quick look at the ads displayed on Facebook and in Gmail makes it pretty clear that marketers know a great deal about you, but the more amazing part is when ads start to follow you around the web. Something has to give here and marketers will need to be more sensitive to this and provide consumers with more transparency like Zappos, the online shoe company that tells consumers what it does with their data and allows them to opt-out of personalized ads (often the result of remarketing or retargeting efforts).

There will also have to be some quid pro quo between marketers and consumers relative to the sharing of their personal data and online behavior. Forrester analyst Fatemeh Khatibloo has some interesting views on the evolution of this relative to Personal IDentity Management (PIDM): http://blogs.forrester.com/fatemeh_khatibloo/11-10-01-are_you_ready_for_a_world_of_consumer_managed_data

Many open questions still exist here and marketers really need to innovate and evolve to provide consumers with preference management platforms that are intuitive and allow consumers to easily understand what has been collected. Google dashboard: https://www.google.com/dashboard/ seems like a pretty good example of this as well, but I have not seen many other good example of ways in which marketers help consumers understand what personal information is being used and how it is used. Can you identify any other good examples?

Digital Data Management Platforms: Great Idea but Continued Evolution is Needed!

roman_lenzen@csgsystems.com (Roman Lenzen) — Tue, 03 Apr 2012 12:00:00 EDT

Data Management Platforms (DMPs) provide a valuable service to online firms, especially online media organizations that generate most of their revenue through online advertising. What is a DMP? DMPs integrate online data sources, into one environment, in order to better empower online publishers and marketers’ media buying and online customer targeting decisions.

DMPs seamlessly consolidate online data sources: Online behaviors, ads, registration, personalization and eCommerce
They merge that data with offline data sources to help their clients gain greater insight into their online customers, through the use of segmentations, campaign tracking reports and audience insight dashboards
They use that insight to better target advertising and internal offers to both anonymous and known users online thus generating increased advertising revenue and/or increased user engagement.

DMPs are digital customer intelligence hubs. So then what is the difference between a DMP and a traditional marketing intelligence system?

Digitally focused: DMPs are focused on digital client needs predominantly however the data may be used to increase offline insights as well.
Online Customer Consolidation: DMPs provide a critical service used to tie online users together throughout online sessions and also integrate online users with offline users.
Tightly integrated: In the digital world customer communication decisions need to fire in as near real time as possible, which requires much tighter integration. DMPs seamlessly integrate the following to enable near real time digital communication decisions
- DMPs track online behavior (tracking your online movements)
- DMPs are tightly integrated with the communication deliver engines (eg. ad servers and content engines)
Traditional integration: Like traditional marketing databases, DMPs are integrated with other sources including email, eCommerce and order management.
Data Model & Segmentations: Most DMPs provide a standard online data model and out-of-the-box segmentations used to get the clients up and running as quickly as possible.

DMPs have done a nice job building out the required infrastructure … technically integrating with the available systems and consolidating user data. In the digital world this is the cost of entry however. DMPs have also done a good job creating standardized data models, segmentations and dashboards in order to minimize solution build time. Then what enhancements should we expect in the next year?

Greater customization: All DMPs know that they need to evolve and the first step in the evolution is to allow for greater data and reporting customization to better fit clients’ needs.
Greater use or proprietary data: As DMPs are used more and more the available out-of-the-box segmentations will continue to become more commoditized. To combat this, customized segmentations and models may be built and then used for even greater enhanced targeting which will demand an advertising premium.
Greater Insights: With the additional data, customization and proprietary segmentations the ability to generate greater digital customer insights will be available.
Offline and online customer intelligence hubs merge: DMPs are the digital customer intelligence hubs. Eventually, offline and digital customer intelligence hubs will merge and DMPs are well positioned to take on some of that work especially due to the added technical complexity of the digital environment that traditional marketing service providers (MSPs) lack in experience.

DMPs have blazed a trail and have set the standard for online consolidated databases. With many recent technical, online and analytic advances, DMPs are well positioned to continue to evolve if they so choose. However, regardless of the digital technical prowess DMPs have in-house, the key will always be to satisfy the end clients, which are predominantly digital marketers and advertisers ... and this requires flexibility and ongoing customization.

B2B Marketers: Use your marketing automation carefully

mbb@csgi.com (Michelle Boockoff-Bajdek) — Mon, 02 Apr 2012 12:00:00 EDT

Ping! That was Outlook notifying me that yet another industry newsletter hit my inbox. But this time, the title caught my eye, so I opened the email. This particular newsletter offered an e-book from a sponsoring vendor, and although I wasn't familiar with the author, I felt compelled to take a look. I downloaded and added the e-book to my "Saved Reading" list, something I reserve for evenings and flights, and then started preparing for my next meeting. At this point, I knew little about the e-book's content, but I’d find out at some point. At some point...when I'd had a chance to read or even glance through it, which is something I hadn't the time nor the inclination to do right after downloading it.

Yet, apparently, the mere fact that I downloaded the book meant that I was clearly far enough along on the buyer's journey to warrant a phone call. In fact, within 15 minutes of downloading, I received a phone call and an email from a sales representative trying to interest me in a personal demo or free trial. Of what? I hadn’t even read the piece, much less looked up the company to determine if its business has any relevance to mine.

I can only imagine the sales rep’s face when my Web form information came in. Great company! Ideal title! Hot prospect! But guess what, salesperson? This isn't about your sales cycle; it's about MY buying journey. And I'm not ready. You haven't given me the opportunity.

I’m sure you’re familiar with the concept of a “buyer’s journey” - the progression of stages that buyers go through from the minute they realize they have a problem until the point at which they select a partner or identify a solution to help them solve that problem. But know this: buyers don't skip stages - they might move through them more quickly at times - but it's important that the buyer move through each and every stage. Your job, as a marketer and/or as a sales person, is to provide them with the information and tools they need, when they need them, to make the best, most informed decision...one that leads them (hopefully) to your product or service.

So to my eager salesperson (and the marketers who sit behind him), here are a few thoughts:

Follow the cues. Remember, a download does not a true prospect make. Let the content (and inbound marketing) work for you. Give your prospect time to read the content, visit your site and learn a bit more about you. Then, as she starts to amass a better lead score (this company is using marketing automation) and has done some self-qualification, she'll have given you the type of information you need to better frame a discussion. OR, she might have enough information to request that free trial or personal demo.
Spend your $$ wisely. You could be wasting valuable inside sales resources by making premature calls. Your sales people will be far more effective (total conversations, % of leads passed, etc.) if you provide them with better, more insightful information about a potential prospect and his areas of interest. Progressive profiling is one way to gather more self-reported information in an unobtrusive way.
Understand my journey, not your sales cycle. Map out the buyer's journey and then determine when and how to execute your marketing activities. I've provided a high-level sample above.
“Show me you know me”. Before a sales rep even picks up the phone, make sure he's done due diligence. Research the organization and the individual online and connect the dots between your services or capabilities and something that’s meaningful and specific to the prospect. Remember: Timeliness + Relevance + Personalization = B2B Prospecting Success.
Nurture, don't rush. Think about your follow-up. Rather than making a call 15 minutes after the download of an e-book, think differently about your contact strategy. In this case, it would have felt more natural to me (as the buyer) if your nurturing stream had included a much-needed wait time to allow me to read and absorb the contents of your e-book.

It isn’t all bad news for this vendor, however; I did take a look at the content and it is, in fact, a good awareness/education piece. The company has entered me into a nurturing stream, which feels very generic, but touches on areas of interest. Whether or not I do business with the company remains to be seen, but I can only hope that my friend the salesperson takes a moment to read this post and sees it for the constructive feedback it is meant to be.

Telecoms can learn from Travel and Hospitality industries

jack_mccush@csgsystems.com (Jack McCush) — Fri, 30 Mar 2012 12:00:00 EDT

I was recently listing to and interview of Caesars Entertainment Corporation CEO Gary Loveman, where he was talking about how his casino use analytics to power customer experience and not by just looking at value or profitability of customer visits. The example he gives speaks about tracking customers play with a card required for slot machines. If one player (player A) starts with a $100 and plays for 30 mins and walks away with $ 0 vs another player (Player B) that starts with $100 and goes to $150 but eventually after 1 hour 30 mins walks away with $0. In this example the one visit both have the same value but Player B would rate his experience as better to player. Thus Player B would be more likely to return and in the long run be a more valuable customer.

Caesars customer services agents may provide some offer to the less fortunately player to improve their experience. The first step is to recognize the poor experience the second is to do something about it. Loveman also states that “Through frequent flyer data we observe a customer as had a poor experience on an airline, the flight was delayed the lost their bag. Is it any mystery that they hate the airline? No, they hate the airline, you know that. So, if you want them to visit the airline again the next time how would you treat them? You’d want to acknowledge that the last trip was a bad one and you are going to try to do something to make it up. That is exactly the same idea, but the airlines never do that. “

I was on a recent flight that was delayed for about 3 hours due to several issues mechanical and weather related. To my surprise when I landed I had an email that stated they were sorry for any problems that the delay may have caused and offered me a travel credit. Similarly, prior departing on a separate trip a hotel chain sent me an email informing me of construction that was taking place at the location I was staying and offered to switch me to another location if I preferred. It seems to me that these industries have taken great steps in recent years to improve customer experience.

The first step is knowledge the second is action. There are several industries that are also aware of negative customer experiences and do nothing about it. CSP’s know when you have a dropped call (or hundreds of them.) MSO and ISP know when there network is clogged and your online experience is poor. Yet, they are content to do nothing about it. How much longer can CSP and MSO ignore customer experience? As markets evolve and become saturated and competitive reducing churn through better customer experience will play a bigger role, which organizations will be ready to take that leap?

Top Trends in Customer Intelligence - a Webinar Featuring Fatemeh Khatibloo

mbb@csgi.com (Michelle Boockoff-Bajdek) — Thu, 29 Mar 2012 12:00:00 EDT

A month ago, I had the pleasure of participating in a Webinar with Fatemeh Khatibloo, a senior analyst at Forrester Research. Rather than an old, staid presentation-style Web event, we approached this one as more of a coffee klatch - a bit of back and forth, more of a discussion. You're more than welcome to view the replay.

We opened the Webinar on the topic of new and emerging opportunities for CI professionals, in light of the increased complexities associated with their role. Most interesting (or perhaps unsettling) were the stats we shared about the amount of data people create and consume every day. I wrote a post late last year entitled, Numbers That Make Marketers Tremble, but Fatemeh shared an unbelievable stat from David Siegel, Futurist: "Human beings generate 200 exabytes of information each year." Exabytes...as in 18 zeros. Now imagine having to store, sift through and make sense of that data.

We have entered the Age of the Consumer according to Fatemeh, which means the rules of engagement between brands and consumers have to change. Why? Consumers want to know what you're doing with all of that data - particularly as it relates to privacy, security, data portability, transparency and economy (value).

Thus, the role of the CI professional has to evolve. In particular, these individuals are tasked with helping their organizations adapt to the age of the consumer by providing better consumer insight and interaction and navigating the muddy waters of data privacy and security.

That's where the Six Dimensions come in. Quaero built a framework to help CI professionals assess their Customer Intelligence maturity across six key dimensions - strategy, process, organization, technology, data, measurement - to determine where they have gaps and areas of focus. To learn more about the Six Dimensions - particularly as they relate to digital, check out Embracing Digital Customer Interaction by our Change Management guru, Niall Budds.

Fatemeh and I closed the hour-long discussion with five key takeaways/points of consideration. Successful Customer Intelligence:

Permeates an organization - from short-term, immediate objectives to long range planning
Sits at the core of successful customer interactions to derive and deliver maximum value
Is central to strategic planning and drives core business and financial decisions (not just marketing)
Is supported by the data & technology necessary to generate strategic customer insights
Requires highly specialized resources who can bridge the gap between data insights and meaningful intelligence for the business

But don't take my word for it. View the slideshare here:

CI Top Trends Deck

And if you have any questions, please reach out to me here in the comments section or via Twitter - @michellebb. You can also tweet Fatemeh - @fatemehx2

When it Comes to Customer Experience, the Little Things are the Big Thing

naras@csgsystems.com (Naras Eechambadi, PhD) — Tue, 27 Mar 2012 12:00:00 EDT

A keen attention to detail is the hallmark of great service companies. It takes a great deal of effort - having the processes in place, hiring the people with the right attitude and training them as well as equipping them with the appropriate customer intelligence at the right time - in order to execute well and provide great customer experiences. We are all familiar with stories of great service upscale brands such as Nordstrom and Ritz Carlton. I would like to share an unexpectedly positive experience within an industry (airline) and a carrier (US Airways) that do not normally come to mind when talking about good customer experiences. I am on the top tier of US Airways' frequent flier program. Usually this means I board early and get upgraded to first class. On those occasions when I have to fly coach, I am reconciled to the airline treating me like everyone else, which is with the level of indifference that has, unfortunately, become the norm for most US airlines on domestic and many international routes.

Recently I ended up sitting in coach, because I had booked my flight at the last minute. As I was settling down for the flight, to my surprise, the flight attendant from first class came back and greeted me. "Sir, welcome aboard. I see that you are Chairman's Preferred. Can I get you anything from the first class cabin?" I was surprised, both by the explicit recognition and by the gesture of service, which had never happened before. I realized US Airways has started to provide their first class cabin attendants with the list of high value passengers who did not get upgraded, so that they can be recognized and appreciated. She also came back to check on me a couple of times during the flight to see if I needed anything, so she was not just going through the motions. Needless to say, this was one of the most positive experiences I have had with US Airways. I handed her an Above and Beyond card (provided by US Airways to its high tier customers) that recognized her service.

This experience, although it sounds simple, only happened because a number of things fell into place.

She happened to have been given a list of Chairman's Preferred customers who were not in first class, information that is typically not shared with flight attendants.
She was trained and asked to reach out to those passengers - a new process that had to be put in place.
US Airways had already provided me with cards that I could use to recognize outstanding service - making it easier for me to recognize her in a tangible way - beyond a thank you.
Flight attendants who collect many of the Above and Beyond cards are recognized and rewarded by the airline on a regular basis - reinforcing the behavior and also helping them identify their best performers - through the eyes of their best customers.

This is a process that engaged the customer and the employee in a virtuous cycle. It is what is needed to provide a positive experience and keep customers engaged. I hope this was not a one-time exception or a particularly diligent employee going above and beyond. It would be nice to see US Airways and other airlines delighting their passengers on a regular basis.

Are You Ready to be a Marketing Apiary?

susan_connors@csgsystems.com (Susan Connors) — Thu, 22 Mar 2012 12:00:00 EDT

I am eagerly awaiting the arrival of a package of 10,000 bees on April 2^nd to start my first hive in Massachusetts. I’ve attended beekeeping classes, purchased and painted my hive, and donned my veil and gloves to observe a working hive, in hopes of becoming a competent beekeeper. However, my real job is to help marketing organizations realize the full potential of customer value. To that end, I can’t help but draw parallels to a working and productive (honey producing) hive, or apiary.

In this age of multi-channel, multi-wave and even multi-brand campaigning, marketing organizations need to focus on aligning the enterprise (not just the marketing department) to achieve integrated customer marketing. Roles and responsibilities need to be defined, communicated and enforced. Without this alignment, the business enterprise, just like a hive, will fail to produce customer value (or honey).

Key areas to focus on include:

Creating a single point of ownership of Marketing Strategy and Planning -- Who is the Queen Bee?

Ownership of overall marketing strategy based on market research, data analysis, past experiences, relevant partners, and corporate business plans.
Plans and oversee the execution of all marketing strategy with authority over execution resources

Instituting an Office of Campaign Execution for centralized campaigning – Worker Bees Unite!

Creates economies of scale and increased throughput efficiencies across all channels
Enforces contact governance with optimal targeting techniques and targeting models

Developing a champion of marketing performance measurements to insure process, credibility, connect and alignment across the enterprise – How much Honey did the Hive produce?

Exercises due diligence on marketing investments but has the ability to compare marketing metrics across the entire customer lifecycle

So, to be a true successful Marketing Apiary you need to:

Map and confirm organizational roles – with ownership, centralization and champions defined
Identify audiences, key messages and the most appropriate communication vehicles to appraise and engage the enterprise in organizational change, and
Ensure those impacted by the change have all of the training and resources they need to be successful

I’ll let you know how much honey my hive produces come Fall, if you let me know how you’ve re-aligned your organization to produce customer value!

Rumors of My Departure are Greatly Exaggerated!

niall.budds@csgi.com (Niall Budds) — Tue, 13 Mar 2012 12:00:00 EDT

I like to think that every company that is trying to build solid customer relationships these days understands the importance of uniquely identifying and understanding their customers’ status and behavior. Then again every week I come across an example of a brand that, even though they are manifestly trying to maintain good relationships, makes this assumption on my part look naïve.

Case in point, the satellite radio provider for my car (name withheld because I actually value their service and don’t want to unduly bash them). Our family has two cars, one of which we switched recently. At that time I called the radio provider and told them what was happening. In spite of that, however, I was obviously placed in their customer “attrition” list. I got a series of “please don’t go” e-mails with increasingly attractive offers to stay, even though I had already paid for their service on our new car and was also maintaining their service on our other car – status quo in other words. These “don’t go” e-mails, and, more annoyingly, many unsolicited phone calls from them, lasted for several weeks.

Finally they gave up - or so I thought! I assumed they had at last realized I had just transitioned their service onto a new car and had not left at all. Little did I realize that they were preparing to come at me with their next round of campaigns – this time the “win back” series. Now I am getting e-mails offering me great discounts – “Niall, please open this email – this is our best offer” if I will only agree to come back and start a new service! All the while I have been using their service uninterrupted.

I will contact this company directly to offer them our help with customer data management (CDM). However I wanted to make the point to a broader audience of how important CDM can be. You have to combine all of your data into an integrated and holistic view of your customers if you want to survive in this era of the customer being in control. In my case, because of the persistence and intrusiveness of the radio provider’s marketing tactics I am tempted to cancel the service completely – the exact opposite of what they are trying to do!

You're Ready for Customer Intelligence - But is Your Organization?

sakina.walsh@csgi.com (Sakina Walsh) — Thu, 08 Mar 2012 12:00:00 EDT

In a business world that has finally come to recognize the significance of the customer-focused model, the proliferation of interactive media has been a timely cultural shift. With one-to-one, real-time customer interaction, digital channels incubate customer data at an unprecedented level of granularity—knowledge that can navigate a company’s toughest strategic decisions. But harnessing online and offline data and synthesizing it into actual customer intelligence is an extensive, intricate process. It requires much more than a technology upgrade or a few new hires. In fact, a firm should be prepared to undergo a widespread cultural shift across the organization—not just a particular department.

Most organizations are completely unaware of the many factors that go into Customer Intelligence (CI) readiness. The CI transformation process often begins with buy-in from just a few enthusiastic managers—but without support and cooperation from the rest of the company, their optimism is mostly likely short-lived. Another common misnomer is the belief that a vendor can whisk a firm through the process with little disruption to its day-to-day functions. And while they can accelerate technology implementations, relay best practices or streamline change management issues, even the best CI agencies and consulting firms will be rendered helpless without a high level of internal dedication.

Studies show that most organizations hit frustrating roadblocks when they attempt to build a CI platform but are actually ill-equipped and unprepared. This not only takes away from the morale behind the initiative, it also causes staffing issues and delays that are both costly and disruptive. While accelerating customer intelligence within an organization is a wonderful idea with huge potential payoff, the company should first assess its readiness and avoid the risks of premature planning. This process should include conversations at the executive level, and consider preparedness across three main dimensions: i) Strategy and Analytics; ii) Data and Technology, and iii) Organization and Process.

To get a better understanding of where you organization ranks across these key dimensions, download a free copy of Quaero’s Customer Readiness Checklist.

The Bacon of Client Engagement

susan_connors@csgsystems.com (Susan Connors) — Tue, 06 Mar 2012 12:00:00 EDT

“Bacon makes everything better,” is a sign I have in my kitchen. I thought of it recently while working with two clients that are implementing new technologies into their organizations. The technology in and of itself will neither improve customer centricity nor ultimately business performance. The new technology is the enabler to measure and improve client engagement. Measurement is the Bacon.

Leveraging information for customer measurement creates the ability to answer questions that are critical to accurately assessing the effectiveness of current business strategies and tactics and exploit upside potential. If you are asking yourself:

Where is the greatest return for each marginal marketing dollar spent?
What is the optimal mix and sequencing of in channel and cross channel activities throughout the customer lifecycle?
What segment is having the best response to current marketing activities?
What are key differentiators/attributes of new customers that have purchased for those who have not responded?
Has share of wallet increased or decreased and at what rate?
What is the current value and the potential value of individual customers over time?
What is the point of diminishing returns for customer solicitations?

Do you have the answers, or more importantly the ability to get these answers and track over time?

Best-in-class marketing organizations recognize the need to link activity and measures to key financial and customer indicators. If a measurement framework has not been developed within your organization, create one that includes the following dimensions:

Action & Activity	Measures the resource, program and activities devoted to achieving marketing objectives. These indicators look primarily at programs, inputs and investments.
Marketing Impact	Measures the results of marketing activities within each stage of customer engagement.
Financial Impact	Measures the financial aspects of marketing programs, including cost, and ROI
Customer Impact	Measures the impact of marketing activities on customer segments
Time and Migration	Measures the time required to move customers through the engagement cycle and provides indicators of migration difficult or stalling

For customer engagement metrics to really be the “bacon”, they should be tailored to specific audiences within your organization:

	Corporate	Strategic	Operational
Stakeholder	Shareholders & Executive Management	Senior Marketing Management	Line Management and Employees
Focus	Bottom line results	Feedback on Strategy	Effectiveness & Efficiency
Typical Business Objectives	Increase shareholder value	Enhance customer engagement	Process optimization
Sample Metrics	Market Share Revenue Growth Profit Growth Margin Growth Customer Loyalty	Customer Value Customer Profitability Share of Wallet Cost to Serve Acquisition Costs Customer Satisfaction Customer Retention	Response Rates Revenue/Sale Cross Sell Ratio Cost of Sales Leads to Close Ratio Campaign Profitability

With a robust set of customer engagement metrics and reports, your marketing organization will be:

Lending consistency and credibility to the on-going decision making process through the establishment and use of a common and stable set of measures and reports
Providing reliable, stable and committed volume forecasts to dependent business partners
Establishing benchmarks for each metric so progress can be measured over time
Ensuring upstream consistency with corporate financial performance measures
Establishing a feedback loop into planning processes to allow for modification and/or re-prioritization of marketing activities.

Your marketing organization will be the Bacon!

When Firing the CEO is Not an Option

niall.budds@csgi.com (Niall Budds) — Thu, 01 Mar 2012 12:00:00 EDT

I have been participating in an interesting dialogue on LinkedIn lately about what happens when, as the new head of marketing, your CEO asks you to assess and “fix” marketing within a notional 30-day period. The range of posts and reactions has been very interesting and, in some cases, worrying. What concerns me the most are the folks - they look mostly like very traditional brand marketers - who argue that the CEO should somehow be “fired” or that you, as head of marketing, should quit in response to a patently “impossible” request that shows how little the CEO understands and appreciates the art of marketing. I characterize that kind of thinking as “head in the sand” and say in response “wake up people!” because, whether they realize it or not, most senior marketers (and marketing itself) are being continuously assessed in terms of their contribution to the bottom line. The difficulty in measuring the return on many marketing investments only exacerbates this problem. So while a notional 30-day deadline is tough, I do feel that making an impact quickly by optimizing your marketing investments is expected of all new heads of marketing, especially because they will also be saddled with the many unrealized expectations the CEO had of their predecessors.

In response my recommendation has therefore been to embrace the challenge. None of us should be surprised when a CEO puts a BHAG out there. So firing them is not an option. The key is to understand why he or she is suggesting marketing needs to be "fixed", and what they mean by that term. We all know it's not possible to make big changes in a month, so what I would do is come back to the CEO with a list of prioritized recommendations, and here are some of the things I would analyze ...

STRATEGY - is our marketing strategy aligned with our corporate goals? Are we focusing on the right kinds of customers? Is our spending aligned with those goals?

PROCESS - is marketing an efficient and proactive internal business partner?

MEASUREMENT - is marketing objectively measuring the right things and in ways which the rest of the company can understand? Is the contribution of marketing to the corporate bottom line clear?

INSIGHT - is marketing living up to its role of customer steward by providing leadership in understanding customers and designing and executing ways to engage with them appropriately?

DATA & TECHNOLOGY - is marketing making the best use of available data and tools (customer database, campaign management, business intelligence, etc.) to be efficient and effective?

PEOPLE - do marketing folks have the right skill sets and roles to advance the brand in this brave new world of customer-controlled engagement?

Net net, I wouldn't be able to "fix" marketing in 30 days, but I would certainly aim to make some prioritized recommendations, together with an estimated business impact - I think that's actionable information the CEO could use.

Big D, little d, What Begins with D? Try Direct and direct.

mbb@csgi.com (Michelle Boockoff-Bajdek) — Mon, 27 Feb 2012 12:00:00 EDT

We all know (but perhaps don't want to acknowledge) that brands shouldn't try to build relationships with their entire customer base; there is no need to focus on the person who buys once every ten months. Instead, spend your time, effort and resources on your top 10, 20 or 30% (depending on your business), increasing your understanding of your most valuable (current and potential) customers. To do that, you must think "direct".

To clarify, "direct" has two distinct meanings here - there are those customers who choose to buy Direct from you (vs. their local retailer); we'll call those "BIG Ds" or simply "Directs". And those who engage directly with your brand via the myriad channels available today (think Twitter, Facebook, Youtube and the like). They're little "ds" or "directs".

The way brands interact with consumers has evolved significantly (particularly with the little "ds") because of digital channels. Brands now have access to a wealth of information from both Directs and directs, which means you have the intelligence you need to develop more relevant dialogues to drive purchase, loyalty and evangelism.

For consumer goods brands in particular, the Direct relationship is an important one - to both you and the customers who buy from you. Consumers buy directly from you because they get better pricing, have more choice, receive better service or have access to exclusives (merchandise, content, etc.). You need to understand and leverage this important base. Why? Because Directs tend to be more loyal and more vocal - therefore more valuable. To make the most of your Big D relationships:

Innovate. Your Direct customers provide the perfect platform for testing, measuring and refining offers, products, and interactions across channels. Want to pilot a new loyalty program or marketing campaign? Start with your Big D customers to see if it resonates; then take it to the masses.

Build tighter relationships. These are the consumers who matter most; they are incredibly loyal. Your Directs love you, will likely buy more from you, and also tell their friends about you. Engage them in relevant dialogues, listen to their requests and then respond to their needs. They'll reward you with increased spend and brand advocacy.

Learn how these customers differ from the rest. You can't infer that your broader base will react to communications in the same fashion as your loyal Directs. Nor can you base your media mix allocations on them alone. You can, however, use customer intelligence (insights gleaned from the data you capture, enhance or infer) to learn more about your customers. First, develop a keen understanding of the differences between your Directs and the general consumer. Use consumer insights (available via external data sources) to develop profiles of your general consumer and then map them to your Directs. Once you have a good handle on which segment(s) of your general consumers look most like your Directs, you can start to tailor your marketing campaigns (both mass and direct/digital) to reach the customers who have the potential to be more valuable. These campaigns typically yield a much higher ROI than pure acquisition campaigns.

For brands looking to strengthen their "little d" relationships with customers, here are a few suggestions and relevant examples:

Pay more attention to what your customers do, not just what they say. Sure, your customers can tell you how frequently they want to see communications and which kinds they're interested in, but you need to take a good, hard look at their habits. Are they opening the emails you send? Do they favor a particular type of message/offer? What are they doing when they visit your Website? Behavioral data can paint a much different (but usually more accurate) picture of consumers' real wants.

Be social. I'm sure it comes as no surprise that social is a great way to build direct relationships. But there are some best practices that will ensure your social media activities are encouraging the right types of behaviors. First, engage in active listening. Companies like Comcast and H&R Block have been doing this for years and have turned Twitter into a very effective (and efficient) service channel. Second, use hooks like exclusivity to drive engagement and purchase. Think JetBlue Cheeps. Every Tuesday, the airline offers discounted deals on last minute flights via Twitter using the account @jetbluecheeps. 271,000 followers can't be wrong.

Make your Web site a DESTINATION. Many companies do this well, but Ocean Spray is a prime example of a company that truly takes heed. They've created a destination site that is part advertorial / part community. While they don't sell direct, they have figured out how to engage with consumers who are passionate about their beverages. Hundreds of thousands of Cranberry Club members have access to exclusive content, including recipes, offers, coupons and giveaways. What does Ocean Spray get? Rich, valuable customer information and a fully engaged consumer base.

Hopefully now you recognize that not all direct relationships are the same. So make sure you're spending your time, effort and precious $$ on both your Directs and your directs. Your customers - both kinds - and your bottom line will thank you.

How does your organization think about direct? Let me know either in the comments or via email at mbb (at) csgi.com.

Social Online Marketing: Hype is Over, Time to Show the ROI!

roman_lenzen@csgsystems.com (Roman Lenzen) — Mon, 20 Feb 2012 12:00:00 EDT

Online social marketing campaigns, used to drive traffic to a site in order to increase online engagement, have been around for a while but they are rarely an optimized process driven by ROI metrics. Why? The primary reason is due to the fact that it is not readily known that the data exists to calculate ROI or, if it is known, the data is not available in an effective structure that allows for an ROI calculation. Therefore, many social online marketing campaigns are analyzed using a cost per click (CPC) metric (total campaign costs divided by number of click-throughs).

To date, most web analytics are at an aggregate level, and not at an individual user level. The evolution from aggregated web analytics to online customer analytics and optimization is taking place, with online Data Management Platforms (DMPs) leading the charge. This evolution, and the resulting data architecture, enables the user to calculate true ROI on all online social marketing campaigns (as well as many other benefits that I will not get into here).

So how do you go about calculating social online marketing ROI? Below is a step-by-step guide.

Online Customer Value Model: First you need an online customer value model applied to all online customers. I know, that sounds complicated, but it does not have to be at first, and it should be built in phases. This is not a financial calculation that will be scrutinized by the SEC. Start with what you have, even if it's a proxy, as an initial value appended to all online customers is much better than nothing. First determine all sources of online revenue and apply at the individual customer level. Once the initial version of the model is complete use the metric while continuing to enhance the 'value model' over time.
Identify your online social campaign data and incorporate. When setting up an online social campaign, whether it be a Facebook, Twitter or a Google campaign (or other), a campaign name tag can be added so once a prospect clicks on that campaign, and is redirected to your site, your online analytics solution can capture who that prospect is and apply a unique ID (or cookie). Now you have all customers that clicked on a campaign, with the campaign name and their click date & time.
Calculate Campaign ROI: The customers identified in step2, as being acquired from social campaigns, may be merged with their resulting value in step1 to calculate ROI. Campaign ROI / Profit = Revenue minus campaign costs.
Enhanced Social Campaign Analysis: Knowing whether an online social campaign generated a profit or a loss is valuable. Further segmenting customers within those individual campaigns, to determine who performs well and who does not, is even more valuable insight that may be used to optimize your online social campaign strategy over time.

The techniques described above provide additional advantages including delivering a means to effectively gauge the value of your online customers by acquisition vehicle / originating site. I have found that not all online customers are created equal thus cost per click (CPC) can be a deceiving way to gauge online social campaign effectiveness.

2012 Super Bowl Ads that Nailed Customer Engagement

sakina.walsh@csgi.com (Sakina Walsh) — Thu, 16 Feb 2012 12:00:00 EDT

The Super Bowl may be the one time of year viewers are as eager to watch the commercials as they are the show...well, at least the halftime show. As always, we marketers tuned in to weigh in on how this year's pack of advertisers managed the most expensive real estate on television. During the 2012 Super Bowl, advertisers delighted with many of its usual ploys (celebrities, endorsements and sex appeal), as with H&M's provocative ad featuring David Beckham. There were also rave-winning new concepts, such as the Honda's rendition of "Ferris Bueller's Day Off". But while campaigns may win applause for recruiting the biggest celebrities or most daring scripts, which brands merely flashed their cash, and which truly engaged customers?

The winners, we found, reflected a thorough understanding of multi-channel marketing, and elongated the customer experience by tying their TV campaigns to other channels. This fully leveraged their massive investments not just by pairing the ads with lower-cost vehicles, but by allowing customers to actively experience the brand rather than just viewing it. You may have noticed that the most engaging ads weren't the most "salesy"; these brands were more focused on crafting a residual customer experience than making an immediate sale. The following champs not only made the list of viewer favorites, they got viewers talking, tweeting, Facebooking, and otherwise immersed with the brands:

1. Bud Light - What better way to manage your corporate social responsibility strategy than to make a cute little rescued dog the face of your brand? Bud Light won high marks with multiple creative commercials during the 2012 Super Bowl, but the clear winner features Weego, a rescued mutt that clearly knows how to party. Dedicated to ensuring each of his guests is welcomed with a cold beer, Weego's star power entertains while hitting a soft spot in viewers' hearts. At the end of the commercial, Weego has undoubtedly won over most of America, the commercial reads, "Help Rescue Dogs", along with a link to Bud Light's Facebook page. Creating a seamless experience, Bud Light's default Facebook image now showcases a classic Bud Light bottle, with Weego's personalized dog collar looped around its neck. Visitors can find more video and images of Weego, as well as a custom app for a charitable campaign where Bud Light will donate $1 to the Animal Rescue Foundation for every "Like" Weego gets.

All in all, this Super Bowl campaign forms a model customer engagement experience: it captures and entertains viewers with a lovable and memorable icon (Weego, of course). It invites viewers to an extended engagement opportunity by connecting to a perfectly synchronized Facebook page. And while still scoring something for itself by requiring users to "Like" the main brand page page in order to "Like" Weego, Bud Light gives something back to the users, too-something they can feel good about (After all, they just earned needy animals a donation just by clicking on a button). And this doesn't even take social virality into account-a Facebook user's actions will show up in their friends' feeds, too. Bud Light now has the opportunity to create a long-term if not lifelong customer experience with the thousands of Facebook subscribers it gained within mere hours of the Super Bowl.

Click here to see the full commercial.

2. Pepsi Max - Soft beverage giant Pepsico pushed its brand hard during the 2012 Super bowl, and while its Pepsi ad featuring such icons as Elton John and X-Factor's Melanie Amaro generated plenty of buzz, it was the Pepsi Max commercial that really won high points with viewers and critics alike. The commercial draws a few chuckles as it depicts a disloyal Coke employee stealthily purchasing a Pepsi Max, as Patsy Cline's "Your Cheatin' Heart" plays in the background. Just when he thinks he's in the clear, the register goes wild and none other but Regis Philbin appears to hand over a larger-than-life check, awarding the woeful shopper with Pepsi Max for life. But beyond the originality, humor, and effective use of a celebrity persona, Pepsi Max scores big in customer engagement by ending the commercial with a link to its Facebook page. Here, Pepsi Max is featuring a "Win Pepsi Max for Life" campaign of their own, allowing visitors to submit video entries to win. Original, consistent, and engaging-- we like it.

Click here to see the full commercial.

3. Godaddy is no newcomer to integrating marketing channels to shape a unique customer experience. Its long-held television-to-web strategy has featured plenty of star power and provoking ads, always ending with, "See more at GoDaddy.com". But this year, Godaddy went a step further, becoming the first to air a Super Bowl ad containing a QR code. And, according to a press release published by the company, the questionable move reaped huge awards, driving record traffic to Godaddy's mobile site. "We decided it was worth the risk to play to all the people watching the game and using their smartphones simultaneously," said Go Daddy Executive Chairman and Founder Bob Parsons. "I'm thrilled we made the decision. Viewers scanned the code and as a result, Go Daddy set an all-time sales record for our mobile site."

Click here to see the full commercial.

5 Steps to Planning Successful Infrastructure: MSPs & Beyond

ben.a.hall@csgi.com (Ben A. Hall) — Tue, 14 Feb 2012 12:00:00 EDT

With over 15 years of experience leading IT Infrastructure for companies ranging from IT start-ups with 10 servers to large Enterprise organizations with 7500 servers, there seems to be some common IT principles that fit every size organization. Infrastructure is often compared to plumbing and piping, where the applications and web pages are considered the faucets and fixtures. Some essentials of plumbing: water is there when you turn on the faucet (dependability), there is enough water to perform routine household tasks (capacity) and that it has proper water pressure (throughput). Plumbing is generally not where people want to spend the bulk of their money. People want to spend it on the fancy faucets and fixtures and trust that the plumbing is in working order. So one of the keys of running a solid server infrastructure is to plan properly and utilize some basic principles that will help you stay within your budget. Here are a few steps to follow when planning out your infrastructure.

Step 1: Virtualize Everything

Between licensing, capacity planning, ease of expansion, data center logistics, and not living under a rock for the past 10 years, you already understand the importance of virtualization for your organization. You probably are also accustomed to the phrase, "You can't virtualize my application because (insert reason here)." What is the correct retort to this phrase? In a nutshell, the correct response is, "Prove it." You need to be ready and willing to spin up a test VM and validate the Fact or Fiction behind the statement. If the vendor states, "We do not currently support our software in a Virtualized Environment," make sure to ask them why. 90% of the time, the answer is that they simply haven't had the bandwidth to certify it within a virtualized environment, not that it won't work for some valid technological reason, or that they won't support it.

Step 2: Document Everything

We would all agree that we typically wish there was more technical documentation on an issue, process, task, or piece of hardware. We are usually quick to show our disdain about how poorly documented someone's code is, or how the latest network diagram doesn't include the latest change that went in the prior night. On the other hand, when it is our turn to document something, we let people know how "all this red-tape" is hindering us from being able to get our important work completed, funny how that works! Well sorry folks, it ALL needs to be documented. If someone tells you to skip the documentation because it isn't that important or there is just not enough time to do it, it is probably the same person that told you that you didn't have to send your wife flowers today because it was a Hallmark Holiday (bad idea in my house). If you ever have to do something more than once in your job, document it, and call it a "process."

Step 3: Standardize Everything

The keys to standardization are basically that they are written, approved, published, and enforced. I won't go into detail on how to write a proper standard, there are lots of Googlable sites with that information, and yes, I not only used google as a verb, but I increased the geek-level by adding a suffix. Like the often overused buzz-phrase "reusable widget" within software frameworks, the thought process should also be applied to Infrastructure. How many different kinds of server builds do you really need? How many different brands of switches or desktops do you need? The less customized infrastructure you have, the easier and cheaper it is to support. Some companies are so good at this that server hardware itself has become such a generic commodity that they run quarterly auctions for the lowest bidder, regardless of brand.

Step 4: Automate Everything

For starters, automating does not mean pawning off mundane tasks to a recently hired intern. It means that if you have a task that you have to perform more than once, you should ask yourself, "Is there something I can do so that I don't have to do this over and over again?" (This also lends itself towards root-cause analysis). There are a lot of easy-to-learn scripting languages, low cost tools, and even super expensive tools that can be used to do this for you. You just have to decide if the investment in the automation is worthwhile, and that will depend on the process you are attempting to automate and the tool you are investigating. My only warning is that you should not let a Tool determine your Process. The Process is the important piece, and the Tool should fit into the process.

Step 5: Dashboard Everything

Give the right information to the right people. A dashboard should be a simple view of KPI's pertaining to Infrastructure and its effect on the business. If you are digging deep into the data, that is no longer a dashboard but a metric, with varied real world significance. The key to perfect dashboarding is... mind-reading. But since that is a hard skill to come by, the next best thing is to ask a lot of questions and get an understanding of what the KPI's are to your line of business. Add in a teaspoon of empathy and predictive thinking, then figure out if there is a way for you to collect and display that data in an appealing, consistent way. Not only do dashboards have the secondary effect of driving proactive Capacity Planning, but it typically also enables side-effect insights and outliers that may have been missed in day to day operations.

Thanks for your time and I hope that these have been helpful to you!

Upcoming Webinar - Top Trends in Customer Intelligence

mbb@csgi.com (Michelle Boockoff-Bajdek) — Thu, 09 Feb 2012 12:00:00 EDT

I hope you will join me and Fatemeh Khatibloo, Senior Analyst at Forrester Research on February 28th at 1pm ET, for an informative webinar to introduce Fatemeh's newest research on Customer Intelligence (CI) Services.

We'll discuss the challenges CI professionals face as their business becomes increasingly more complicated and Fatemeh will share the four key trends - Indemnification, Engagement Selectivity, Risk & Revenue Sharing and Marketing Safe Havens - that will change the way CI professionals evaluate and select vendors.

I hope you'll join us for this exciting event. Expect a lively discussion and some great insights you won't want to miss. Click here to register for the Top Trends in Customer Intelligence Webinar.

Also, all attendees will receive Quaero's Client Readiness checklist, a great tool to help you assess readiness - everything from change management to a comprehensive data audit and inventory - as you embark upon your own marketing database initiative.