2012 Forrester Research, Inc. Reproduction Prohibited
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1 1
2 Activating Analytics: The New Customer Intelligence Imperative Srividya Sridharan, Analyst March 6, Forrester Research, Inc. Reproduction Prohibited
3 3 Source: Yahoo Education:
4 4
5 5 Source: Art Market Blog (
6 6 Source: Art Market Blog (
7 + 7 Source: Art Market Blog (
8 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 8 Source: Dataspora (
9 9 Source: O Reilly Radar ( FlowingData ( and SearchBusinessAnalytics.com (
10 You also know analytics is mainstream when this happens 10
11 Predictive analytics is 11 Source:
12 Agenda The state of intelligence and insights today A roadmap towards an Intelligent enterprise Activating analytics in the Intelligent enterprise 12
13 What s keeping Customer Intelligence professionals up at night? 13
14 14
15 15
16 16
17 17
18 We have entered the Age of the Customer 18 Source: June 2011, Competitive Strategy In The Age Of The Customer Forrester report
19 Most marketing departments employ out-dated thinking 19 Source: October 2010, It s Time To Bury The Marketing Funnel Forrester report
20 Marketers need to put the customer at the center 20 Source: October 2010, It s Time To Bury The Marketing Funnel Forrester report
21 Current decision support models miss the mark 21 Source: April 2011, Preparing For The Intelligence Enterprise Forrester report
22 Few firms operate at a strategic level of intelligence Strategic intelligence 12% Marketing intelligence 34% Functional intelligence 54% Base: 301 Customer Intelligence professionals Source: October 2009, The Intelligent Approach To Customer Intelligence Forrester report 22
23 Agenda The state of intelligence and insights today A roadmap towards an Intelligent enterprise Activating analytics in the Intelligent enterprise 23
24 What is Customer Intelligence? The management and analysis of customer data from all sources used to drive marketing performance and business strategy. 24
25 The Customer Intelligence Cycle Capture Apply Customer Knowledge Manage Analyze 25
26 Marketers see significant benefits in adopting customer intelligence 26 Source: October 2009, The Intelligent Approach To Customer Intelligence Forrester report
27 Ingredients of an Intelligent Enterprise 27
28 Do you speak data? When you two have finished arguing your opinion, I actually have data! 28 Source: Make Meetings More Productive by Arguing, Lifehacker (
29 Traditional Agile Agility in customer-facing processes Plan Reacting to change Processes Interactions Specifications Prototypes Liaisons, business analysts Face-to-face business participation 29
30 The rules of engagement with customer data are changing 30 Source: September 2011, Personal Identity Management Forrester report
31 Marketing technology is table stakes 31
32 Customer intelligence plays different roles Marketing technologists Marketing scientists Marketing practitioners Customer strategists 32 Source: October 2009, The Intelligent Approach To Customer Intelligence Forrester report
33 Measurement & metrics analytics Customer-focused Customer lifetime value Customer retention, churn Customer profitability Customer loyalty Engagement Marketing-focused Campaign response Revenue by source Conversion rate Cost per lead Customer referral rate Service-focused Cost of service Cross-sell/upsell revenue Net Promoter Score Likelihood to recommend Average handle/wait time 33
34 Agenda The state of intelligence and insights today A roadmap towards an Intelligent enterprise Activating analytics in the Intelligent enterprise 34
35 Effective activation of analytics needs alignment of multiple components 35 Source: February 2012, Use Customer Analytics To Get Personal Forrester report
36 Activation of analytics typically falters in four areas ENFORCEABILITY TIMELINESS ACCURACY DELIVERY 36 Source: AI Access ( and Coupa (
37 37 How do you activate analytics?
38 38
39 Choose customer experience over customer relationship 39 Source: April 2011, Beyond CRM: Manage Customer Experience Forrester report
40 Each customer interaction is an opportunity to know more about the customer Discover Explore Buy Engage The amount of information about the customer grows as the relationship advances through the customer life cycle. 40 Source: Simply Zesty (
41 PROFITABILITY Activate analytics at each interaction point Discover Explore Buy Engage Intervene to reduce number of unprofitable customers. Intervene to cross-sell/upsell and drive revenue. Focus on retention, loyalty, and engagement to drive profitability. Focus on recovery. VALUE OF ANALYTICS Reduce cost to serve and drive margin. Acquire profitable customers through better targeting. Make customers profitable faster. CUSTOMER LIFETIME 41
42 Map out analytical options to lifecycle stages 42 Source: July 2011, How Analytics Drives Customer Life Cycle Management Forrester report
43 43
44 Marketing scientists translate geek to Greek Marketing scientists 44
45 Level of translation varies at each step of the analytical process 45 Source: February 2012, Customer Intelligence Needs A New Breed Of Marketing Scientist Forrester report
46 46
47 Balance eye-candy with data integrity 47 Source:
48 The right visualization tools can help bring sophisticated analytics to life 48 Source: September 2011, Use Interactive Marketing Dashboards To Improve Decision-Making Forrester report
49 49
50 Leverage social media as a source of unstructured, unsolicited data Unsolicited Customer ratings on 3 rd party sites Social media data Solicited CSAT and NPS scores Survey comments and chat transcripts Structured Unstructured 50
51 Take steps to integrate social media with customer data to unlock the value of unstructured data 51 Source: October 2011, The Road Map To Integrating Social And Customer Data Forrester report
52 So, when you head back to the office 52
53 53
54 ANALYTICS PROFESSIONALS 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 54
55 Thank you Srividya Sridharan Forrester Research, Inc. Reproduction Prohibited
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