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white paper | 2007

Global Brands Bring New Focus to Holistic Customer Strategy

The Payoffs of a Single View

a division of Carlson Marketing Worldwide


Global Brands Bring New Focus to Holistic Customer Strategy

The Payoffs of a Single View Executive Overview

u

nfortunately, everyone has been there.

relationships

from

competitors

or

with

Every day a communication or a bill

irrelevant messages from companies with

arrives from a company with which you have

which they currently do business. Profits and

a long relationship. Yet, the company seems to

long-term enterprise health are at stake

think you’re a new customer. Or it’s pitching

with every effort to attain, attract, or grow

you a product you already own.

customers. Developing a single view of the

>contents

This kind of alienation is the unmistakable

customer is a well-worn customer strategy

Executive Overview ____2

sign of a company that lacks a single view of

solution whose importance has magnified time

its customer. The company that treats you like

and technology improvements.

Global Momentum for the Single View ________3 Bell Canada Simplifies Its Approach _________4-6

they don’t know you, doesn’t really know any

In this whitepaper, we will detail the single

of its customers. It’s a company that has a

view strategies of several global companies

database for sales, a different database

that have successfully applied the vision to

for marketing, and a completely different

achieve that view and the technology to

approach for operations. This whitepaper will

enable it: Bell Canada, Turkcell, Essilor and

show you how to make sure that your compa-

Interval International. They have applied a

Interval Requests an Upgrade____________8

ny doesn’t become one of those companies.

single view of the customer to the following

Conclusion ____________8

Simply put, developing a real-time solution to feed a single view of your customer is the best way to stay relevant and effective for all customer-facing activities. In the current business

landscape,

traditional

one-way

challenges: • Unifying disparate databases in the wake of mergers and acquisitions. • Measuring changing customer needs to communicate the most relevant offer for

marketing and the costs associated with it are

retention, acquisition, and overall increases

being

in customer value.

questioned.

Yet

customers

are

continually barraged with marketing messages and loyalty programs aimed at short-term

• Retaining customers in the face of new competitors by embracing new technologies.

Read this if…

You will learn:

• You are involved with planning, executing, or influencing customer intelligence initiatives.

• The difference between database management and the advantages of real-time updates that will lead to a single view of the customer.

• You are interested in applying data to marketing, operations, sales, and contact center management.

Connecting the B2B Network for a 360-Degree View _______7

• Best practices from several global companies including Bell Canada, Turkcell, and Interval. • B2B applications for a single view of the customer.

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

2


Global Brands Bring New Focus to Holistic Customer Strategy

Global Momentum for the Single View “A single view of the customer” has been a mis-

also makes the applications easier to integrate.

understood phrase and strategy for years. It does not mean developing a database. It does not speak

Act Like You Know the Customer

to data mining. It is more complex and much more

The proof points of developing a single view of the

effective when done right. How this single view or

customer can be seen in the companies that

single database is achieved will differentiate

continue to benefit from its implementation. The

between companies, depending on factors such as

companies whose stories follow in this white paper

business model, IT infrastructure, centralized or

have addressed major issues of data unification

decentralized operations. For example, a virtual

and continuous refinement of marketing approach-

real-time model might be better than building a

es. In short: They act as if they truly know their

huge data store for a company that has gone

customers. And they’re seeing significant payoffs

through acquisition and has multiple sources of

in customer relationship metrics, share of market,

customer information that cannot be ‘ripped and

and marketing effectiveness measurements.

replaced.’ Single view includes the adoption and

“We are seeing several different companies

governance issues that are so important to a

around the globe who have built their growth strat-

company that wants to act as a customer advocate,

egy around a single view of the customer. Many of

predict lifetime value, and effectively segment its

these companies are seeing increases in customer

customer base. Using the technology that enables

satisfaction rates, customer acquisition rates, prod-

a single view of the customer is an executive

ucts sold per household, and overall market share

mandate, not an individual employee choice.

based largely on their ability to have a consistent

“Single view of the customer means that a virtu-

view of their customers,” says Patric Timmermans,

al data model can be mapped to data sources, and

global director of CRM Product Marketing, Infor.

all applications can access data sources through

“Across industries like financial services, telco,

that virtual data model,” says Alex Rodriguez,

hospitality and retail, these companies have

customer advocacy manager for Infor CRM, point-

utilized the single view of the customer to close the

ing out that companies have achieved this single

loop between inbound and outbound marketing

view in as little as three months. A single view is

and are making strides towards optimizing each

also updated in real time, according to Rodriguez.

customer interaction.”

“Across industries like financial services, telco, hospitality, and retail, these companies have utilized the single view of the customer to close the loop between inbound and outbound marketing and are making strides towards optimizing each customer interaction.” – Patric Timmermans Global Director of CRM Product Marketing, Infor

It is not harvested once a quarter and then distributed in a new version to department heads. The

Investing in Single View

customer database that truly contains a single view

When it comes to spending money on data technology, companies want functionality and low TCO.

of the customer looks a little different on a minuteto-minute basis. It will result in better coordination

Functionality

between sales, marketing, and operations.

74%

In order to achieve a single view and the

69%

business benefits that come with it in such a short period of time, Rodriguez adds that it is critical for

64% Total Cost of Ownership

companies to utilize open systems that can re-use

78%

the legacy systems in place and also interface

51%

easily with all front-end user interfaces. She says

48%

the “open architecture” approach is crucial because it allows companies to integrate front-end customer intelligence with back-end systems and

Large

Mid-size

Small

Source: Aberdeen Group, August 2006

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

3


Global Brands Bring New Focus to Holistic Customer Strategy

Enterprise objectives across industries Financial Service

Retail

Telecommunications

• Maximize ARPU, products per household • Minimize churn • Multichannel customer service

• Understand customer behavior related to customer conversion, acquisition, and retention • Single view of the customer • Multichannel customer service • Personalized customer experience

• Anticipate and prevent churn despite compensation • Increase number of products per customer • Turn call center information opportunity to up-sell and cross-sell • Increase customer satisfaction and loyalty

Hospitality

Travel & Leisure

Manufacturing

• Personalized customer experience • Maximize share of wallet • Player/customer loyalty • Multichannel customer service

• Increase customer loyalty and preference • Maximize customer revenue • Improve service quality and efficiency • Capture and close sales opportunities

• Single view of the customers across the supply chain • Zero-error order capture • Streamline opportunity to cash processes • Leverage investment in ERP and backoffice systems Source: Infor

Bell Canada Simplifies Its Approach Telco is one of the industries that has benefited

to inform its contact center. By providing –

from the single customer view. With 28 million

through the use of real-time data mining tech-

customers, Bell Canada is easily the biggest com-

nology – its customer service representatives

munications company in Canada. But its busi-

(CSR) with a broader view of the customer—

ness challenges meant it couldn’t take any one of

including

those 28 million for granted. From the customer’s

data—agents knew how to pitch the right service

point of view, Bell Canada was several compa-

combination at the right time. The company saw

nies. It provided land line, wireless, Internet and

a substantial gain in its ability to present up-sell

even TV services. Bell Canada wanted to be seen

and cross-sell offers and handle reduced call

as “one company” in the eyes of the customer.

times. Bell Mobility saw its CSR sales per hour

In order to do that it needed a consistent view of

climb 18 percent and saw a staggering 50

its more than 28 million customers across its

percent increase in offer response rates. “When

portfolio of product offerings. Each one of those

we initially started, we were looking at a 10 to 15

customers was at a different point in their lifecy-

percent response rate, so the 50 percent rate is a

cle with Bell Canada. Some depended on land

huge increase,” says Owen Sonnenschein,

lines; some on wireless. Some wanted a bundled

associate director of CRM Development and

package that included TV and Internet services.

Implementation, Bell Canada.

transactional

and

demographic

But knowing what service offering to make was

Based on the success of the work in inbound

critical. It risked becoming a company that treat-

marketing at its wireless division, Bell Canada

ed its customers as if they didn’t know them.

quickly expanded its single view approach to its

The focus on a single view evolved from Bell

other lines of business, and is now concentrating

Canada’s wireless division, Bell Mobility. While

on improving both its inbound and outbound

its competitors focused on rate discounts to

marketing efforts as it extends integrated or

attract customers, in 2001 it turned its attention

bundled wireless/land line/Internet/TV offers to

to using a real-time unified customer approach

its customers.

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

4


Global Brands Bring New Focus to Holistic Customer Strategy

Bell Canada used what it learned from its cus-

Most importantly, the individual success Bell

tomer efforts to unite its marketing messages as

Canada has achieved within its inbound and out-

well. Each one of its lines of business had its

bound customer touch points, have all added up

own marketing message to emphasize. Wireless

to a 15 percent increase in the company’s

wanted to stress payment plans, for example.

Average Revenue Per User. “Our company has

The Internet division wanted to stress connec-

learned the power of a single view and our cus-

tion speed. The overall company wanted to

tomers are clearly seeing the benefits as well.”

push bundled payment plans. “In the past, our different businesses had been operating in silos,

Single View, Global Stage

where we might have sent a direct mail piece to

The wireless voice and data industry is equally

a customer with a wireless offer one day and

competitive in Europe. Like Bell Canada,

then a high-speed Internet offer the next,”

Turkcell was in a strong market position when

Sonnenschein adds.

it decided to create a real-time customer view.

To address the disparate marketing approach,

It recently won Gartner’s 2007 EMEA CRM

Bell Canada developed a single view of its cus-

Excellence Award. Although Turkcell claims a

tomers along with a governance model for its

60 percent market share position in Turkey,

marketing efforts. It understood through contin-

with 31.8 million subscribers, the competitive

uously updated data, which customer groups

heat was turned up a few notches last year

were most likely to accept a new rate plan for

when the number two player was acquired by

wireless service based on increased usage and

global communications giant Vodafone (which

it understood that its Internet customers should

also owns a stake in Verizon Wireless in North

not get a letter offering new Internet service.

America).

“We now have better internal coordination and

Anticipating that the mobile landscape would

a system where no business gets left behind.

become more crowded in Turkey, Turkcell imple-

We also have a model that allows us to commu-

mented a four-stage customer view initiative,

nicate messages that recognize the products

which began in 2002 and continued through

customers are already buying from us and

2006. The central part of the program was built

extends an offer that makes sense to the con-

around establishing a single customer database

sumer,” Sonnenschein says.

with unique identifiers to allow for customer

The benefits of the new single view approach have

been

multifaceted,

according

– Owen Sonnenschein Associate Director of CRM Development and Implementation, Bell Canada

segmentation and more personalized customer

to

experience. Those identifiers included customer

Sonnenschein, including the ability to target

value, overall service usage, current services,

specific customer segments with relevant offers

recent offers made, service additions, and rate

and also the agility to quickly respond to com-

plan efficiency. By tapping into customer demo-

petitive shifts in the marketplace. As part of its

graphics as well as transaction and call histo-

new integrated approach, Bell Canada now has

ries, the Turkcell system allowed its marketing

all promotional campaign components integrat-

team to extend targeted outbound offers and

ed within a single, web-based application,

also allowed its inbound customer teams to cus-

resulting in a 75 percent improvement in the

tomize offers based on these insights.

time it takes to distribute a campaign.

“ We also have a model that allows us to communicate messages that recognize the products customers are already buying from us and extends an offer that makes sense to the consumer.”

One of the fundamental business goals of

“Particularly in the wireless category,” says

the program, according to Meltem Sahin, divi-

Sonnenschein, “customers have a high propen-

sion head of Marketing Insights & Reporting for

sity to churn. Certain markets like Quebec have

Turkcell, has been automating activities at each

smaller competitors that will often launch

touch point, whether it is the Internet or contact

aggressive, guerrilla marketing campaigns and

center. This unifies the marketing approach

we need to be able to respond. With our new

each customer will see and it eliminates redun-

outbound systems, we are able to have a brand

dant offers. Sahin says this unification

new offer ready in as little as 20 minutes.”

enhances two-way communication between

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

5


Global Brands Bring New Focus to Holistic Customer Strategy

Cleaning House Before they reach the stage of optimizing inbound and

come together from a variety of sources and that

outbound marketing campaigns as Bell Canada and

process requires collaboration across different lines of

Turkcell have, many companies need to clean house in

business. To achieve a real 360-degree view of the cus-

regard to their disparate sources of data.

tomer, it takes an investment of time and resources.

“In the early stages of implementing a single customer view, most companies have focused on a

However, if you don’t make that commitment, you wind up with a view of the customer that is incomplete.”

consistent customer record in their database and then drill down into purchase behavior and spend patterns,”

Acquisition Issues

says Taylor Duersch, member of the Peppers & Rogers

One of the biggest hurdles for many large companies,

Group 1to1 Faculty. “Where there is still a gap is the

according to Alex Rodriguez, customer advocacy man-

ability to expand that single view across all channels.

ager for Infor CRM, is aligning disparate databases from

Are you able to determine if they have opened or

companies that have been added through acquisition.

responded to email offerings or identify them when

The common roadmap to achieving a single customer view involves building a common data warehouse, which

they visit your website?” The process is not easy but is essential especially for

then feeds that consistent data to separate sales, service

companies that acquire new customer groups, or acquire

and marketing systems. However, Rodriguez points out

an entire business.

that the time frame for a large organization that has

“I think a lot of companies have underestimated how

recently made an acquisition is realistically anywhere

complex it would be to achieve a true single view of the

from 12 to 24 months. She says progressive companies

customer,” says Duersch. “In a lot of cases, companies

have achieved a single customer view much faster, even

have been buried by legacy systems they inherited

within three months by applying a real-time “distributed

through different mergers and acquisitions. Once they

information view,” which utilizes common data stores

get past that issue, there is a lot of data that needs to

and unified business processes.

the company and customers in order to get

recommend, and to make additional purchases.

genuine responses about customer-related

The company is now able to manage more

activities, and create word-of-mouth buzz

than 23 million customer interactions per month

about the brand.

through 19 different communication channels.

That feedback from customer touchpoints,

Customer complaints have dropped 30 percent.

according to Sahin, has generated insights

Turkcell has improved its customer acquisition

gained into customers’ problems and purchase

campaigns because it is more relevant with its

motivations. He says the company incorporates

messaging. “Win-back” ratios (measured by

feedback into its single view data initiative to

customers who had started a cancellation

ensure that customers have a positive experi-

process and were persuaded to remain) are up.

ence during the different stages of product, ser-

“Understanding customers’ problems and

vice or campaign management. During the

developing customized solutions for each of

beginning of a marketing campaign, feedback is

them is the critical success factor for us. We put

used to define better target groups, product

more emphasis on identifying a fall in satisfac-

qualifications, and campaign design. At the post

tion and ensuring this doesn’t become a cause

analysis phase, customer insights are used to

for churn, as well as stimulating usage for dor-

determine levels of satisfaction, intention to

mant customers,” Sahin says.

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

6


Global Brands Bring New Focus to Holistic Customer Strategy

Connecting the B2B Network for a 360-Degree View While most companies have established a 360-degree

ty program to the independent dealer network, Loyalty

view of the consumer by collecting customer intelli-

Lab evaluated the opticians’ previous marketing

gence from their target audience, a few innovative

spend. The research showed that the independent

cases have emerged where brands have used the 360

dealers were focusing too much on customer acquisi-

degree approach to tie B2B partners in to customer

tion and putting little emphasis on repeat customers.

loyalty programs.

That practice was resulting in a 10 percent loss of their

One such model was achieved by Essilor, a manu-

customer base during the replenishment cycle. Loyalty

facturer of eyewear and optical products, based in Paris. The company was faced with a

cialty industries. Its network of 1,150

“It was really a win/win relationship because it increased Essilor’s brand awareness, revenues for the independent dealers and overall customer satisfaction.”

independent dealers based in the

– Jasper van IJssel, CEO, Loyalty Lab

customer challenge that has been all too familiar to many suppliers in spe-

Netherlands was rapidly losing market share to larger chains. This independent dealer network was responsible for a large share of the sales on Essilor’s

Lab was also able to show the dealers that the break-

high-end Varilux brand.

even point for the loyalty program would be reached if

Because most of the independent opticians did not have the budget or the experience to compete with the

they could push business from current customers up only 1 percent.

marketing efforts of the major chains, Essilor part-

According to Jasper van IJssel, CEO of Loyalty Lab,

nered with a Netherlands-based company called

the program created a consolidated data mart, which

Loyalty Lab (no connection to US based Loyalty Lab)

allowed Essilor to extract independent data and com-

to create a loyalty program that includes both B2B and

municate with relevant target groups and consumer

B2C components. Essilor gained a real-time database

segments by utilizing their partners’ data. It was a

on each of the 1,000-plus stores to determine the fac-

win/win relationship because it increased Essilor’s

tors that would keep the Varilux brand, and other

brand awareness, revenues for the independent deal-

Essilor products front and center in its stores. In

ers, and overall customer satisfaction.

exchange for that loyalty, Essilor enrolled the store in

The business results attached to the program,

an “Alliance” program that enabled the company to

which were originally focused on dealers in the

place orders electronically and also provided basic

Netherlands, were impressive. Average market share

functions for promotions and technical training.

for participating Alliance dealers increased from 29.9

Beyond the initial investment, Alliance dealers were

percent to 38 percent and revenue also jumped 14 per-

then given credits toward the cost of the program

cent per outlet. The payoffs were just as significant for

based on their Essilor purchases.

Essilor, as sales of its eyewear climbed 8 percent and

In order to help demonstrate the value of the loyal-

consumer churn was reduced by 24 percent.

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

7


Global Brands Bring New Focus to Holistic Customer Strategy

Interval Requests An Upgrade Just four years ago, Interval International was one

center,” Patel says. “We now have more than 150

of those companies that communicated with its cus-

offers, which can be targeted down to the person.

tomers as if they didn’t know them. Up until 2003,

We are now able to segment our offers regionally

the vacation exchange network of 1.8 million cus-

and also incorporate purchase and behavioral pat-

tomers and more than 2,000 resorts was hamstrung

terns so we are not talking to someone in Texas the

with a homegrown CRM system that provided no

same way we talk to someone in New York City. We

visibility into its customers and limited its email dis-

are also able to see if a particular channel, such as

tribution to 15,000 at a time. A recent overhaul of

email, isn’t working for you and try to adjust our

the company’s IT and marketing departments, as

marketing to fit a particular customer’s preference.”

well as the implementation of a new Infor single-

Because the ability to communicate timely vaca-

view customer solution, has provided the company

tion offers is critical in the travel business, Interval

with a full, integrated view of the customer.

has an immediate payback from the ability to

“With our old homegrown system, we were

increase its email volume and also to send targeted

sending the same email offers to every customer

messages. From a volume standpoint, the company

and every customer saw the same banner ad when

has increased its email capacity to 1.2 million over a

they visited our website,” says Sapana Patel,

seven-day period, resulting in an immediate rev-

Interval’s director of applications services. After

enue increase, and its email open rates jumped 60

going through the early phases of the project,

percent in targeted groups.

Interval learned that the payoffs wouldn’t come

The next phase of the single view strategy for

from the CRM system alone, so the company

Interval, according to Patel, will be integrating the

created a centralized department to oversee their

call center so it can access the same offers being

customer interactions.

extended electronically. Patel also wants to expand

“We now have one view of the customer and we

the ability to better calculate the lifetime value of its

know exactly who you are whether we are commu-

customers to extend more relevant offers to its

nicating via email, our website, or through a call

top-tier customers.

“We are now able to segment our offers regionally and also incorporate purchase and behavioral patterns so we are not talking to someone in Texas the same way we talk to someone in New York City.” – Sapana Patel Director of Applications Services, Interval

Conclusion Interval’s use of the single view strategy shows that

customer retention and acquisition. The obstacles

the increased customer intelligence made available

are big but must be overcome. Unifying outdated

can be used to increase customer value. When Patel

data collection processes, rules and analytics and

says that the company will develop more offers for

bringing those processes into real-time life can help

its top-tier customers, the single view of the cus-

your company see its customers better, and align

tomer it has developed will make defining its top

itself around that customer view. Bell Canada did it

value easier. It will also enable more relevant offers

with its various products that needed to all find a

to that customer group, which will develop more

relevant target among its 28 million customers.

revenue from that group and stronger customer

Turkcell did it to fend off competition. Interval did it

relationships. Increasing customer value is a key

to increase customer value.

strategy in the always on, hyper-marketing world that your customers live in.

With a single customer view, your company will avoid the alienation that comes with treating cus-

The variety of examples also shows that a

tomers like strangers. A single customer view helps

unified view of the customer is an essential com-

your company treat customers as they should truly

petitive strategy as well as an efficient approach to

be treated: like your most valuable asset. 

©2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

8


Global Brands Bring New Focus to Holistic Customer Strategy

Infor Infor delivers business-specific software that helps enterprising organizations of all sizes adapt to rapid change. With experience built in, our solutions are helping more than 70,000 companies meet their goals in a global marketplace. So go ahead. Be as innovative as you want to be. As ready to seize new opportunities. Infor is right beside you. Changing what you expect from a business software company. For more information, visit www.infor.com .

Peppers & Rogers Group Peppers & Rogers Group is a management consulting firm, recognized as the world’s leading authority on customer-based business strategy. Founded in 1993 by Don Peppers and Martha Rogers Ph.D., the firm is dedicated to helping companies grow the value of their business by growing the value of their customer base. Our goal is to develop and execute strategies that create immediate return on investment and long-term customer value. Peppers & Rogers Group maintains a significant voice in the marketplace with its 1to1 Media properties. Led by 1to1 Magazine, these print, electronic and custom publications reach more than 250,000 decision-makers. Peppers & Rogers Group is a division of Carlson Marketing Worldwide, and is headquartered in Norwalk, CT. More information is available at: www.1to1.com

Š2007 Carlson Marketing Worldwide. Peppers & Rogers Group is a division of Carlson Marketing Worldwide. All rights protected and reserved.

9

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