New technologies and rapidly changing customer needs and behaviour force organizations to adjust more quickly. Primarily, this has an impact on the front office, which is often still compartmentalized and designed with a strong segregation of its three key functions: marketing, sales and customer service.
In the new reality, these traditional silos have to be deconstructed to allow customers to really take centre stage and to create a more agile organization that can continuously move along with changing customer needs. A single customer image must be created, and, in addition, an integrated and optimum customer experience are essential. This process touches on all facets of the organization, from its culture and structure to embracing new technologies, as well as far-reaching deployment of data and customer insights required to create the best customer service. Only then can customers really be persuaded and assisted in a way that meets their needs and expectations.
And rest assured, those expectations are high. Interactions have to exude personalization, be consistent across all channels and give customers a flawless experience. Or rather: ‘Dear organization, know who I am, make things easy for me, inform me and protect me when necessary’.
For the marketing function in particular, this means that organizations have to develop, among other things, a 360-degree real time customer image that is continuously enriched with relevant data points. This enables marketeers to better assess what potential customers need, and to target customers in a more personalized manner. Furthermore, it forces marketeers to make customer interactions smarter, with the support of technologies. The purpose is to enter into clear and flawless interactions with your customers. In a world where organizations are increasingly part of an ecosystem of partners, the importance only grows. And here, too, it is clear that customer data, and with that customer insight, allows for highly targeted interactions with customers.
Customer & Brand Strategy
KPMG The Netherlands
There are many examples of proper integration, such as offers from internet providers. Their offers are aimed at specific demands, current and future data use and distilled preferences. Without the customer actually noticing anything, data on use, online search behaviour and feedback are linked together by customer service, resulting in a prediction of what the customer needs. The offer sent to the customer’s mailbox is tailored to the customer’s requirements.
Or let’s take the subject of financial security. Based on data analysis, predictions can also be made as to which products are interesting and align with specific needs during the customers’ current stage of life (for example getting married or having children). This allows banks and insurance companies to provide optimal support and information to customers. Banks and insurance companies then know how and when they should contact customers on, for example, pensions. Or, based on data, they are able to predict how and when they need to discuss an inheritance with their customers.
Such targeted marketing interactions with a personalized offer are developing rapidly, and becoming increasingly the standard for users. This development requires a lot from analysis capabilities, but it also requires a sharp moral compass. The fact that things are possible does not automatically mean that you should act. Apart from the legal privacy framework, there is also an implicit ethical framework. Purpose and brand DNA form the compass for that ethical framework.
Customer data and analytics are the key
The key to realization of all the above is a new approach to customer data & analytics. An infinite amount of data and technology is available to unlock customer data and convert it into relevant customer insights. The big question is: where do you start and where do you stop?
We would like to draw your attention to three considerations:
1. Take a step towards customer profiling. Clearly map your potential and actual customers based on behaviour, convictions, background and actions. Create a 360 degree customer image, and deploy behavioural analytics and social intelligence to form and develop that image.
2. Work on journey optimization. In other words: ensure that customers have a coherent and tightly orchestrated customer journey. How does a customer decide to make a purchase? Which digital or other interactions play a role and how are they related? Which channels do you use and how do you ensure a clear experience across all these channels?
3. Always define the next best action. Make data-driven predictions to create a personal offer or recommendation. And always adjust it as soon as there are new insights.
In the end, customer data & analytics contribute to a smarter marketing function. Marketing aimed at acquiring customers for life. But where you start and what you want to deploy depends on what fits your organization's DNA, your purpose and your defined CX strategy. KPMG helps you with these considerations and the successful deployment of customer data & analytics.
Questions? Contact our specialists. They are happy to help!
Customer & Brand Strategy
KPMG The Netherlands