© 2012 forrester research, inc. reproduction prohibited · 2012-03-08 · 3 © 2012 forrester...
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© 2012 Forrester Research, Inc. Reproduction Prohibited 1
© 2012 Forrester Research, Inc. Reproduction Prohibited 2 © 2009 Forrester Research, Inc. Reproduction Prohibited
Activating Analytics: The New Customer Intelligence Imperative
Srividya Sridharan, Analyst
March 6, 2012
@Srividya
© 2012 Forrester Research, Inc. Reproduction Prohibited 3 Source: Yahoo Education: http://education.yahoo.net/articles/5_laid-back_careers.htm?kid=1I10C
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© 2012 Forrester Research, Inc. Reproduction Prohibited 5 Source: Art Market Blog (http://www.artmarketblog.com/2008/03/11/art-market-blog-staggering-art-market-statistics/)
© 2012 Forrester Research, Inc. Reproduction Prohibited 6 Source: Art Market Blog (http://www.artmarketblog.com/2008/03/11/art-market-blog-staggering-art-market-statistics/)
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+
Source: Art Market Blog (http://www.artmarketblog.com/2008/03/11/art-market-blog-staggering-art-market-statistics/)
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“The sexy job in the next 10 years will be
statistician. . . . The ability to take data — to be
able to understand it, to process it, to extract
value from it, to visualize it, to communicate it
— that’s going to be a hugely important skill.”
Hal Varian
Google’s chief economist
Source: Dataspora (http://www.dataspora.com/2009/05/sexy-data-geeks/)
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Source: O’Reilly Radar (http://radar.oreilly.com/2011/09/building-data-science-teams.html), FlowingData
(http://flowingdata.com/2009/06/04/rise-of-the-data-scientist/), and SearchBusinessAnalytics.com
(http://searchbusinessanalytics.techtarget.com/news/1280099515/Data-scientists-helping-businesses-navigate-big-data-seas)
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You also know analytics is
mainstream when this happens…
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Source: http://www.colbertnation.com/the-colbert-report-videos/408981/february-22-2012/the-word---surrender-to-a-buyer-power
Predictive analytics is……
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The state of intelligence and insights today
A roadmap towards an Intelligent enterprise
Activating analytics in the Intelligent enterprise
Agenda
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What’s keeping Customer Intelligence professionals up
at night?
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We have entered the “Age of the Customer”
Source: June 2011, “Competitive Strategy In The Age Of The Customer” Forrester report
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Most marketing departments employ out-dated thinking
Source: October 2010, “It’s Time To Bury The Marketing Funnel” Forrester report
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Marketers need to put the customer at the center
Source: October 2010, “It’s Time To Bury The Marketing Funnel” Forrester report
© 2012 Forrester Research, Inc. Reproduction Prohibited 21 Source: April 2011, “Preparing For The Intelligence Enterprise” Forrester report
Current decision support models miss the mark
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Few firms operate at a strategic level of intelligence
Source: October 2009, “The Intelligent Approach To Customer Intelligence” Forrester report
Strategic intelligence
Marketing intelligence
Functional intelligence
54%
34%
12%
Base: 301 Customer Intelligence professionals
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The state of intelligence and insights today
A roadmap towards an Intelligent enterprise
Activating analytics in the Intelligent enterprise
Agenda
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What is Customer Intelligence?
The management and analysis of
customer data from all sources used
to drive marketing performance and
business strategy.
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The Customer Intelligence Cycle
Customer
Knowledge
Capture
Manage
Analyze
Apply
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Marketers see significant benefits in adopting customer intelligence
Source: October 2009, “The Intelligent Approach To Customer Intelligence” Forrester report
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Ingredients of an Intelligent Enterprise
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“When you two have finished arguing your
opinion, I actually have data!”
Source: “Make Meetings More Productive by Arguing,” Lifehacker (http://lifehacker.com/5480724/make-meetings-more-
productive-by-arguing)
Do you speak data?
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Agility in customer-facing processes
Liaisons, business analysts Face-to-face business
participation
Processes Interactions
Specifications Prototypes
Plan Reacting to change
Tra
ditio
nal
Agile
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The rules of engagement with customer data are changing
Source: September 2011 ,“Personal Identity Management” Forrester report
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Marketing technology is table stakes
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Customer intelligence plays different roles
Marketing technologists
Marketing practitioners
Customer strategists
Source: October 2009 ,“The Intelligent Approach To Customer Intelligence” Forrester report
Marketing scientists
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Measurement & metrics analytics
Customer-focused
Marketing-focused
Service-focused
Customer lifetime value
Customer retention, churn
Customer profitability
Customer loyalty
Engagement
Campaign response
Revenue by source
Conversion rate
Cost per lead
Customer referral rate
Cost of service
Cross-sell/upsell revenue
Net Promoter Score
Likelihood to recommend
Average handle/wait time
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The state of intelligence and insights today
A roadmap towards an Intelligent enterprise
Activating analytics in the Intelligent enterprise
Agenda
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Effective activation of analytics needs alignment of multiple components
Source: February 2012, “Use Customer Analytics To Get Personal” Forrester report
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Activation of analytics typically falters in four areas ENFORCEABILITY TIMELINESS
ACCURACY DELIVERY
Source: AI Access (http://www.aiaccess.net/English/Glossaries/GlosMod/e_gm_confidence_interval.htm) and Coupa
(http://www.coupa.com/solutions/innovations/cxo-dashboards)
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How do you activate analytics?
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Choose customer experience over customer relationship
Source: April 2011, “Beyond CRM: Manage Customer Experience” Forrester report
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Each customer interaction is an opportunity to know more about the customer
Discover Explore Buy
The amount of information about the
customer grows as the relationship
advances through the
customer life cycle.
Source: Simply Zesty (http://www.simplyzesty.com/advertising-and-marketing/advertising/trends-ingame-advertising/)
Engage
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Activate analytics at each interaction point
CUSTOMER LIFETIME
PR
OF
ITA
BIL
ITY
Discover Explore Buy Engage
VALUE OF
ANALYTICS
Acquire profitable customers
through better targeting.
Make customers profitable
faster.
Reduce cost to serve and
drive margin.
Intervene to cross-sell/upsell
and drive revenue.
Intervene to reduce number
of unprofitable customers.
Focus on retention, loyalty, and
engagement to drive
profitability. Focus on recovery.
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Map out analytical options to lifecycle stages
Source: July 2011, “How Analytics Drives Customer Life –Cycle Management” Forrester report
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Marketing scientists translate ‘geek’ to ‘Greek’
Marketing scientists
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Level of translation varies at each step of the analytical process
Source: February 2012, “Customer Intelligence Needs A New Breed Of Marketing Scientist” Forrester report
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Balance eye-candy with data integrity
Source:http://flowingdata.com/2009/11/26/fox-news-makes-the-best-pie-chart-ever/
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The right visualization tools can help bring sophisticated analytics to life
Source: September 2011, “Use Interactive Marketing Dashboards To Improve Decision-Making” Forrester report
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Leverage social media as a source of unstructured, unsolicited data
Customer ratings on 3rd
party sites
Social media data
CSAT and NPS scores
Survey comments and chat transcripts
Unsolicited
Solicited
Structured Unstructured
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Take steps to integrate social media with customer data to unlock the value of unstructured data
Source: October 2011, “The Road Map To Integrating Social And Customer Data” Forrester report
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So, when you head
back to the office…
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What my friends think I do What my mom thinks I do What non-analytics colleagues
think I do
What partners think I do What I think I do What I really do
ANALYTICS PROFESSIONALS
© 2009 Forrester Research, Inc. Reproduction Prohibited
Thank you
Srividya Sridharan
Twitter: @Srividya
www.forrester.com