acquisition and beyond: using customer dna to gain and keep valuable customers

Acquisition and Beyond: Using Customer DNA to Gain and Keep Your Best Customers

February 18th 2015

Steven Noels

CTO, NGDATA

2Copyright 2014 NGDATA®, Inc. Confidential – Distribution prohibited without permission

Attracting a new customer costs five times as much

as keeping an existing one.

(Lee Resources 2010)


Acquisition Targets

Anonymous Identified Existingcustomers


Traditional Acquisition is Costly and Ineffective

▪ Testing messaging and offers is costly and

time consuming when marketing to broad

segments

▪ Personas and segments are defined at a

point in time, meaning real-time knowledge

is not applied to improve communication as

individual preferences evolve over time


Traditional Acquisition (Continued)

▪ Individuals interact with each

channel differently

▪ Not using multi-channel data

means missed opportunities to

connect with the right customers, at

the right time and in the right way

▪ Customers expect to be treated as

individuals


A customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related.

-Bain Consulting


The Value of Personalization

However, few companies have been able to implement

Source: Econsultancy, Digital Marketing Exchange

of those surveyed believe that "personalization is critical to our current and future success”

94%


Technology Barriers

regard IT roadblocks and lack of technology as barriers to adopting or improving personalization

Source: Econsultancy, Digital Marketing Exchange

No Solutions – No Automation – Manual Work – Low ROI

84%


Organizational Barriers

“Customer centricity is a culture of putting the customer

at the center of everything you do.”—BRIAN SOLIS

Organizational change is required to put the

customer front and center.

This means more than just a technological change, it means a desire to put the customer first.


Using personalization to support the different phases of acquisition


Use current customer history to enhance the web experience of the unknown prospects

Personalize the on-boarding experience

Create acquisition campaigns that have the right messages and incentives for your audience for further engagement

Build individual profiles on anonymous visitors.

Apply customer behavioral information to anonymous profiles to create an effective multichannel experience

Personalized Profiles to Attract Unknown Customers


Use knowledge of customer and past anonymous prospect behavior to make relevant offers.

Create acquisition campaigns that have the right messages and incentives for your target audience.

Identify top potential converters/ highest value prospects. Provide a unique web experience based on behavioral data, appropriate offers at the right time, anticipate prospects needs through the process.

Engage Identified Prospects


Use current customer history to enhance the web experience of the unknown prospects

Maximize the return on investment within the first few months of acquisition.Increase customer lifetime value.

Use DNA to improve service immediately after acquisition to increase cross and upsell likeliness

Upsell/Cross Sell Current Customers


What is Customer DNA?

a collection of 1000s of predefined metrics, calculated in real time and organized per identified customer

based on a variety of interaction-and fact-based data sources, using a variety of predefined calculation, prediction and/or retrieval methods

providing actionable data for marketing & customer-centric applications


Customer DNA is Based on Interaction DataMonitor customer behavior, translated into DNA metrics


Anonymous Profiles to Increase Acquisition

▪ Real time up-to-date propensity

scores uncover temporary

changes in customer willingness

to buy a product

▪ Set alert notifications for when

customers are most willing to

convert

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0.1

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Monthly propensity Lily propensity Target group membership cut-off

Customer Targetting


Enterprise Architecture: Adding the CustomerWithin the Current Enterprise Architecture – Improving existing BI landscape

Operational Systems

External Data

Contract/Product Data

Customer Operational Data

Reference Data

Reporting / Analytics

Enterprise BI and reporting

Enterprise Analytics Applications

Marketing and Social Data

Customer Interaction Data

Campaign Data

ERP/CRM Data

Data Warehouse Data

Service Desk

Customer CRM and IVR Systems

Web and Mobile

Mobile Apps

Customer Website

Channel / Campaigns

Mail

SMS

Print

Broadcast

Mar

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Cam

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Sales Office

Agent / Advisor


Enterprise Architecture: Adding the CustomerWithin the Current Enterprise Architecture – Improving existing BI landscape

Operational Systems

External Data



Reference Data






Campaign Data

ERP/CRM Data

Data Warehouse Data

Service Desk


Web and Mobile

Mobile Apps

Customer Website

Channel / Campaigns

Mail

SMS

Print

Broadcast

Mar

keti

ng

Cam

pai

gn M

gt

Sales Office

Agent / Advisor


Lily & Enterprise ArchitectureWithin the Current Enterprise Architecture – Improving existing BI landscape

Operational Systems

External Data



Reference Data






Campaign Data

ERP/CRM Data

Data Warehouse Data

Service Desk


Web and Mobile

Mobile Apps

Customer Website

Channel / Campaigns

Mail

SMS

Print

Broadcast

Mar

keti

ng

Cam

pai

gn M

gt

Sales Office

Agent / Advisor


Lily Delivers Next Generation for Greater Acquisition From Raw Data to Individual Preferences


Become Data Driven About Acquisition

Use any volume of real-time

data to actively guide and

optimize business processes

based on continuously growing

insights on customer behavior,

intent and preferences.


Key Takeaways

▪ Phases of Acquisition

− Anonymous Prospects

− Identified Prospects

− Existing Customers

▪ Customer DNA and profiling

enables one-to-one marketing for

greater acquisition

▪ Proactively engaging through real

time messaging and offers

increases customer acquisition and

retention for higher customer

lifetime value


Are you ready to use Customer DNA to gain and keep your customers?Learn more about how Lily Enterprise can help your company. Schedule an appointment with an NGDATA representative to get a personalized walkthrough.

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acquisition and beyond: using customer dna to gain and keep valuable customers

Marketing

right customers

right time

confidential distribution

best customers

right waycustomers

highest potential customers

right wayin todays landscape

time consuming