Archive for the 'Marketing Analytics' Category

08
Sep
08

Segmenting travelers – Here’s a method to do it

There’s always a lot of thinking & data-driven insights needed on how to approach segmentation of customers. At Cequity, we have always believed that we have to connect transactional data with behavioral observations that can help us identify customer types and segments more precisely. Here’s a method adopted for the travel & hospitality business. Read on:

This questionnaire, developed by travel researcher Stanley Plog, divides travelers into six personality types. At one end of the spectrum are “venturers” who like to strike out on their own to remote places. At the other are “authentics” who prefer Disney World as an adventure.

Two people can take the exact same trip and come away with completely different impressions. Many travel experts offer a short quiz to help define your travel personality. If you love going places, you may be an adventurous traveler. This means generally you love going places you’ve never been, keep your passport current–just in case–or laugh at the very idea of a travel guide book. You are spontaneous and curious and like learning about the world by experiencing it. You look for last minute deals that provide you a chance to explore new places.

Structured travelers like to have a plan in place and look for low stress. You even have an alternative plan if something should go wrong. You like to look at your hotel room by online video so you know exactly what to expect. Laid back travelers handle stress without much anxiety. You choose a relaxing vacation one time and an active one another. You often wait until you arrive at your destination to decide what you will do while you are there.

To find out your travel personality try taking a quiz at a new Web site, www.Besttripchoices.com

08
Sep
08

The art of scorecarding

The term “Scorecards” originated with the Kaplan and Norton’s definition of the balanced scorecard and was meant to create a strategic method of management. Scorecard software, for its part, is intended to encapsulate a company’s strategic plan and allow operations to be measured against it.

In this way, the scorecard considers information not from the bottom up, with an “in all this data there must be a pony some where” perspective, but from the top down. In other words, What is strategic to our business and can we measure it from the highest levels through the lowest levels of detail to support decisions and action plans?

Scorecards help put these myths to bed by pulling back the wizard’s curtain to reveal critical business data that is specific to authorized executives, managers and departments, in a format which is graphical and makes clear the relationship between content. In effect, scorecards makes visible the results of all the “accounting” being performed in the organization and even step beyond what is typically thought of as accounting to include operational metrics.

Thanks to beyeblogs.com

01
Sep
08

B2B Loyalty – Best Practices

Here are the latest trends in B2B loyalty, technology and analytics that can help business build a bond with other other businesses:

How do you transform your company from a mere vendor into a valued partner? By building a loyalty platform on a strong foundation of customer data—and leveraging that platform to identify, understand and influence the consumer behind the account number.

Here are some best practices that you should consider:

IDENTIFY: People, not account numbers

Here’s a look at a few of the predominant models for identifying critical B2B contacts:

Give them some face time.

Jeff Hayzlett, Chief Business Development Officer for Eastman Kodak Company, is intimately familiar    with the B2B identification challenge.Given the vast variety of customer types, Eastman Kodak’s approach is to facilitate meetings and events with end users who value the chance to interact with the company on a personal level. Kodak’s annual Graphic Users Association Conference brings Kodak product managers and software developers face-to-face with their end-users, while a series of customer councils for publishers, commercial printers, and database marketers helps Kodak identify key decision-makers and influencers and give them tools to help them grow their businesses.

Use Web 2.0 tools—but warily.

One in three small-business owners now cultivate leads and choose suppliers based on recommendations from social-networking web sites such as Facebook or LinkedIn.”Increasingly, small-business owners are getting referrals and searching for supplier recommendations through their networks. Direct mail, newspaper and broadcast advertising are becoming less efficient mediums for reaching small businesses.”

UNDERSTAND: It’s the database, stupid

Once you have identified your sweet spot of small-business customers, the next step is to spend some time understanding their current behavior and comparing it to that of your best customers. Your goal is to isolate behavioral gaps that can be overcome with the right offer.

Treat your database like an asset.

B2B data degrades much more quickly than consumer data. While a consumer might keep the same email address for most of her adult life, a small-business buyer might change jobs, get a new title or return to the corporate world. That makes data refreshment a continual challenge.

Thou shalt not live on transactional data alone.

A 2008 Marketing Leadership Council study found that, because the cost of switching suppliers is higher and more complex in B2B, “attitudes”—in other words, the customer’s emotional connection to the brand—are often better indicators of B2B loyalty than pure transactional behavior. Small-business customers can look loyal in the transaction file, but a survey might find pockets of disgruntled customers who could benefit from an intervention.

Become a data conduit.

In the consumer world, data tends to flow one way, from the consumer to the database. B2B marketers, by contrast, can also learn a lot about their small-business customers by reversing the data stream. Small-business credit cardholders who lack accounting departments, for example, can benefit from information on their business purchases. AT&T Universal Business Rewards cardholders not only earn Citi ThankYou Rewards points on all purchases, but also gain access to a wealth of tools to help track and analyze business expenses.

Source: Colloquy

01
Sep
08

Predictive vs Descriptive modeling – Understanding the difference

Many organizations use historical analytics data as a basis for forecasting future growth, and establishing performance goals and budgets. This applicaton for analytics data can blur the distinction between predictive and descriptive data. Understanding this difference is critical to an effective analytics program.

Predicitive modeling refers to a mathematical model that can accurately predict future outcomes. For instance, I know that if I apply sufficient heat to water, the water will reaach 100 degrees celsius and begin to boil (barring slight variations for altitude which are also predictable). The rate at which this happens and the amount of energy required can be mathematically described.

Descriptive modeling refers to a mathematical model that describes historical events, and the presumed or real relationship between between elements that created them. For instance, yesterday when I went to the store to buy milk, it cost me $1.00 a litre, last month it was 95 cents, last year it was 80 cents.. Based on historical events, I assume it will cost me roughly $1.05 to buy a litre of milk next month.

Read more

24
Aug
08

Managing Data in the clouds

Joe Mckendrik has an interesting perspective on this topic:

More companies are emphasizing their ability to compete on analytics, and the ability to integrate and leverage enterprise data is key. Whether on-site or in the cloud, effective data integration is a must.

As cloud computing engagements increase in sophistication and edge ever closer to the mission-critical core of the enterprise, recognition is growing that there are enterprise data management issues that still need to be worked out. “Our belief is that cloud computing or on-demand computing is simply a way of further fragmenting data, because customers are absolving themselves from responsibility for the management, storage, security, and backup and recovery of the availability of that data,” Chris pointed out. However, he emphasized, “you must never, ever, absolve responsibility for the quality and the ownership of the data, and having such quality and ownership as part of your core business processes. And that requires integration.”

As Informatica’s Ron Papas put it, technically, there isn’t a lot of difference between on-site systems and data stores and cloud-managed systems and data stores. However, there’s a big difference in the ownership of these applications:

“What’s that’s doing is it’s bypassing the traditional process of having IT design the whole integration processes into the solution. So, before you know it, you could be up and running with Salesforce.com without having put much thought into integration, because it’s really being led by the line of business side. You could have someone in the sales and marketing unit that somehow bypassed IT and went up and implemented Salesforce. All of a sudden, they realize they need access to that data. they need it synchronized.”

24
Aug
08

Delivering Customer Experience – Good news & bad news

1-to-1 Media has some interesting perspectives on the challenges companies face to deliver a seamless customer experience. Take a look:

What do you believe is your organizations biggest hurdle in delivering an excellent customer experience?
Departmental silos 35.2%
Commitment from the top 17.0%
Recruitment and training 15.9%
Technology 14.8%
Focus on reducing operational cost 10.2%
Lack of investment 6.8%

…..how well customer-centricity has permeated their organizations. On the good news side, the majority of attendees work in organizations that think delivering an outstanding customer experience is everyone’s job. The bad news: 5 percent actually have no one responsible for ensuring that customers have a positive experience.

Who is responsible for customer experience in your organization?
Everyone 64.6%
All front line employees 15.2%
Contact centre employees 7.1%
Customer experience team 8.1%
No one 5.1%

How would you rate your company’s performance against its competitors in terms of customer experience?
Much better 12.3%
Better 32.9%
The same 38.4%
Not quite as good 13.7%
Worse 2.7%

Interesting, right?

24
Aug
08

Automotive Loyalty – A huge challenge

Automotive customer loyalty at the manufacturer level has dropped by 9.2 percentage points, from 49.1% in 1998 to 39.9% in 2008, and costing some automakers more than US$3 billion in annual sales, according to a study by Experian.

Loyalty challenge
“However, the increased number of available manufacturers and models make engendering customer loyalty a bigger challenge than ever before,” Waldron warned. “Automakers that have a firm understanding of what drives their customers to remain loyal will have a significant competitive advantage in such a challenging market.”

The company suggests that even a small rise in customer loyalty can lead to significant increases in revenue. For example, a manufacturer with 10 million current customers will have approximately 1.5 million of those customers return to market in a given year. A 1 percentage point rise in customer loyalty would produce 15,000 additional annual sales, or approximately US$405 million in additional revenue (based on an average vehicle sale price of US$27,000).

But if that same manufacturer could improve loyalty performance by the 9.2 percentage points lost since 1998, it would generate an additional US$3.726 billion in annual sales.




At Cequity, we believe customer intelligence will be the biggest competitive advantage enterprises will have in the next decade or two. Successful enterprises of tomorrow will be the ones who can organize and leverage this information at speed to optimize their marketing performance, increase accountability, improve profit and deliver growth. Cequity insights will bring to you trends and insights in this area and it’s our way of sharing best practices so as to help you accelerate this culture and thinking in your organization.
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