The most common questions that a lot of enterprises fail to answer accurately are –
- Is the Customer happy with their overall relationship experience?
- What mode of contact do they prefer? And at what time? Can Customers be better targeted at these channels at those preferred times?
- What is the overall Customer Lifetime Value (CLV) or how much profit we are able to generate from this customer over their total lifetime?
- By understanding CLV across populations, can we leverage that to increase spend on marketing & sales for products that are resulting in higher customer value?
- How do we increase cross sell and up-sell of products & services?
- Does this customer fall into a certain natural segment and if so, how can we acquire most customers like them?
- Can different channels (Online, Mobile, IVR & POS) be synchronized ? Can Customers begin a transaction in one channel and complete it in any of the others without having to resubmit their data?
The first element in Digital is the Customer Centricity & it must naturally follow that a 360 degree view is a huge aspect of that.
Illustration – Customer 360 view & its benefits
So what information is specifically contained in a Customer 360 –
The 360 degree view is a snapshot of the below types of data –
- Customer’s Demographic information – Name, Address, Age etc
- Length of the Customer-Enterprise relationship
- Products and Services purchased overall
- Preferred Channel & time of Contact
- Marketing Campaigns the customer has responded to
- Major Milestones in the Customers relationship
- Ongoing activity – Open Orders, Deposits, Shipments, Customer Cases etc
- Ongoing Customer Lifetime Value (CLV) Metrics and the Category of customer (Gold, Silver, Bronze etc)
- Any Risk factors – Likelihood of Churn, Customer Mood Alert, Ongoing issues etc
- Next Best Action for Customer
How Big Data technology can help..
Leveraging the ingestion and predictive capabilities of a Big Data based platform, banks can provide a user experience that rivals Facebook, Twitter or Google and provide a full picture of customer across all touch points.
Big Data enhances the Customer 360 capability in the following ways –
- Obtaining a realtime Single View of the Customer (typically a customer across multiple channels, product silos & geographies) across years of account history
- Customer Segmentation by helping businesses understand customer segments down to the individual level as well as at a segment level
- Performing Customer sentiment analysis by combining internal organizational data, clickstream data, sentiment analysis with structured sales history to provide a clear view into consumer behavior.
- Product Recommendation engines which provide compelling personal product recommendations by mining realtime consumer sentiment, product affinity information with historical data.
- Market Basket Analysis, observing consumer purchase history and enriching this data with social media, web activity, and community sentiment regarding past purchase and future buying trends.
Customer 360 can help improve the following operational metrics of a Retailer or a Bank or a Telecom immensely.
- Cost to Income ratio; Customers Acquired per FTE; Sales and service FTE’s (as percentage of total FTE’s), New Accounts Per Sales FTE etc
- Sales conversion rates across channels, Decreased customer attrition rates etc.
- Improved Net promotor scores (NPS), referral based sales etc
Customer 360 is thus basic digital capability every organization needs to offer their customers, partners & internal stakeholders. This implies a re-architecture of both data management and business processes automation.
The next post will discuss the second critical component of Digital Transformation – the Customer Journey.