The 2017 data-driven marketing report. Telecoms and Utilities Summary Report

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1 The 2017 data-driven marketing report Telecoms and Utilities Summary Report

2 Data-driven marketing survey Introduction Top three telecoms and utilities data-driven priorities With the ability to easily compare and switch providers, telecoms and utilities marketers are challenged to compete on price and experience. It s not surprising that many have adopted loyalty programs to boost retention, but that s only just scratching the surface of what s possible. A steady shift to data-driven marketing will revolutionise every aspect of telecoms and utilities, providing brands with opportunities to create personalised and seamless people-based marketing, to stand out from the competition. 1. Improving the customer contact strategy 73% 62% Jaywing commissioned a study to evaluate marketing s maturity in data-driven marketing by capturing the views of over 250 Managerial to C-level marketers, within medium to large-sized businesses. This report is a summary of the results for the telecoms/ utilities sector. Telecoms and utilities marketers took the lead in the growing trend of becoming customer obsessed, with 73% ranking improving the customer contact strategy as the top priority for data-driven marketing, and improving customer retention strategies much higher than other sectors (68%). But in order to satisfy customer needs, telecoms and utilities firms need to take advantage of data science. With price hikes and being out-of range to retrieve services being known to put a dampner on customer experience, the telecoms and utilities industry seem to be more aware of the need to use modern data science techniques to improve customer experiences. Data science techniques help marketers to understand their customers intent, behaviour and full path to purchase but are we using it enough? 2. Improving customer retention strategies 68% 56% 3. Improving customer insight by joining online and offline interactions 48% 41% Interestingly, telecoms and utilities marketers were the only sector to rank joining online and offline interactions as one of their top three priorities.

3 73% of telecoms and utilities marketers say improving the customer contact strategy is the top data-driven marketing priority. risk.jaywing.com

4 Data-driven marketing survey The telecoms and utilities sector s data-driven marketing maturity How advanced are telecoms and utilities at measuring attribution? How does the telecoms and utilities sector compare? Telecoms and utilities marketers were the most confident in their use of data-driven marketing compared to other sectors, with 51% stating that they felt they were ahead of their peers. The maturity of personalisation Despite this confidence, almost half of telecoms and utilities marketers (43%) said they did basic (32%) or no personalisation (11%). While only 14% adopt full crosschannel personalisation, this is higher than their peers (8%), but there is still a significant lack of adoption. is the most commonly personalised channel for all sectors, with an average of 89% of telecoms and utilities marketers personalising their programmes. A greater proportion of telecoms and utilities marketers (52% versus 43% overall) stated personalised Direct Mail also supported their customer contact strategy. The maturity of measuring ROI and attribution In line with the overall average, the majority of telecoms and utilities marketers (68%) agree that accurately attributing value across channels is vitally important to their organisation. Yet a significant number of them are still using basic methods to calculate attribution, and only 23% are using advanced attribution techniques. Moreover, surprisingly, we found that the majority of telecoms and utilities marketers (66%) believed they were using the right approach to attribution. This may indicate a lack of knowledge of the latest data science techniques. Last interaction 18% 26% Channel most engaged with before purchase 18% 25% Using advanced attribution techniques 23% 18% First interaction 41% 31%

5 Only 2 in 10 telecoms and utilities providers are using advanced attribution techniques. Yet 6 in 10 think they are using the best approach. risk.jaywing.com

6 Data-driven marketing survey Key data challenges for telecoms and utilities Top three data challenges The importance of data management is well known, with 91% of telecoms and utilities providers saying data management is a priority for their marketing function this year. But there are still obstacles to its collection, understanding and management. A skills gap is impeding data management improvements Accessing, defining and using customer data is one of the most difficult challenges faced by marketers today, as they struggle with a skills gap. Almost half of telecoms and utilities say a lack of skills and capability is the biggest obstacle to improving data management in their organisation. This is followed by a lack of availability of the right tools to help them analyse and manage data. 1. Lack of data skills/capability 43% 47% 2. Availability of the right tools 34% 30% 3. Organisational structure 32% 36%

7 Around half of telecoms and utilities (43%) say a lack of skills and capability is their main obstacle to improving data management. risk.jaywing.com

8 Data-driven marketing survey Summary Empowered consumers and the digital era is demanding significant change, particularly for telecoms and utilities where it s easy to compare prices and switch. To encourage loyalty more so, telecoms and utilities need to further develop relationships with customers by improving the maturity of their data-driven marketing from personalising messages across the channel mix, to accurately measuring ROI and attribution across online and offline channels. And to do so, telecoms and utilities marketers have some major hurdles to overcome, from a data science and analytics skills gap through to improved infrastructures and siloed data. In order for telecoms and utilities marketers to achieve the ultimate customer experience, they must refocus their priorities on eight key areas: 1. Start with best practice data management 2. Ensure your strategy is informed by data and insight 3. Get the right technology and tools to collect intelligent data 4. Combine online and offline data 5. Personalise your entire customer contact strategy 6. Achieve the right blend of creativity and data 7. Adopt advanced attribution techniques 8. Find the right experts to fill your data skills gap To read the full research report and benchmark your organisation, visit jaywing.com

9 risk.jaywing.com

10 Data-driven marketing survey Eight tips to transform data into value 1. Start with best practice data management If customer insight is key to competitive advantage in the digital age, then data will be the fuel to provide this insight. But you will only gain the right insights if you have the right data infrastructures and processes in place that capture individual interactions as they happen. 2. Ensure your retention and acquisition strategy is informed by insight The competitive nature of the telecoms and utilities market today, means marketers need to place equal focus on acquiring and retaining customers. Data can inform the whole marketing mix by personalising communications across every channel, at an individual-level. By ensuring your strategy is based on data and insight you are already steps ahead of the competition. 3. Get the right technology in place Improving data-driven marketing can become complicated without access to the right tools and analysis. Emerging marketing intelligence platforms are now bringing tools and analytics together, integrating rich and disparate customer and market data into a single datadriven model. By leveraging data-driven technology capable of tracking an individual s complete customer journey, marketers can use this information to engage customers with recommendations or offerings that best fit their needs to create deeper relationships and increased customer satisfaction. 4. Connect online and offline channels Given the rise in customers hopping between channels and devices to manage and engage with their providers, improving cross-channel marketing and measuring its effectiveness is harder to achieve. By joining the dots between online and offline customer journeys, you can create a single customer view, improve the customer experience and improve ROI at the same time. 5. Personalisation that goes beyond Hello [first name] The majority of telecoms and utilities marketers (89%) personalise campaigns. But personalising customer communications doesn t have to stop here. Providing customers with a personalised experience across all channels means you can provide a consistent journey that satisfies their individual needs, to the letter. 6. Achieve the right blend of data and creativity The competitive and crowded nature of the supply market means that it is difficult for organisations to set themselves apart. Yet we now live in an era of data-driven creativity, where data is being harnessed to shape and realise the value of a brand, to shape personal relationships and drive more effective communications. Already, some utilities are evolving their approach to both engage and acquire customers and move from a commodity to a more helpful provider. 7. Model advanced attribution across channels at an individual-level While 72% of telecoms and utilities marketers see the value of accurately attributing across channels, only 23% are using advanced attribution models. This means that marketers are still struggling to understand the return from their investments, and are unable to attribute revenue across all channels. While digital platforms have enabled brands to collect more data about customer behaviours, marketers are still not joining this data together with their offline data to see the full path to purchase at an individual level. 8. Partner with the data experts A skills shortage is often the biggest barrier to marketing programmes, with 43% of telecoms and utilities marketers citing this as their top challenge. With the lack of skilled data scientists, organisations are increasingly turning to external experts to help them to understand, manage and manipulate data. Expert data scientists will not only discover new insights, but they have the ability to make it actionable and meaningful for your specific strategy or campaign.

11 Competing with data science About Jaywing In order to consistently make the most informed decisions, organisations need to take advantage of data science. However it s clear there are a variety of challenges hindering telecoms and utilities marketers ability to make the transition from data-driven marketing immaturity to enjoying a competitive advantage over their rivals. For now though, too many organisations are hindered by a skills gap and organisational siloes. Through data science and customer intelligence, they can secure the insight needed to help customers make smart telecoms and energy choices. By using data-driven insights to deliver enhanced, personalised experiences, telecoms and utilities will then be able to effectively engage customers, and maintain their market share. The focus on using data to create value for customers, before trying to extract value from them, is the key to winning the data-driven marketing race. Jaywing has a long-standing heritage in data. From developing and delivering data-driven solutions across both marketing and credit risk functions, everything we do is grounded in data. Over the past 17 years, we have worked extensively across a variety of industry sectors, including retail, financial services, travel and leisure, and telecoms and utilities to transform data into value. With our heritage in data science, we deliver exceptional results, creating briliant work that s impossible to ignore. We have a solid reputation for developing complex analytical and modelling approaches that underpin major investment decisions across many industry sectors, where accuracy and rigour are critical to success. Jaywing has a team of over 70 data, analysis and modelling experts. Many of these people have held senior positions in client organisations, and our focus is very much on the commercial application of analysis and data-driven decisions.

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