An IBM survey conducted close to a year ago of 1,700 CMOs across 64 countries from five sectors and 19 industries revealed that 79 per cent expect high complexity over the next five years and feel under-prepared to manage key changes as a result of data explosion, social media, increasing channel and device choices, and shifting demographies.
This signals three areas of improvement – deliver value to empowered customers, foster lasting connections, capture value and measure results. Customers now have access to unlimited information across social media and their expectations from companies with respect to service, pricing, and product delivery have undergone a paradigm shift making business more complex, said Gagandeep Arora, Country Leader – Industry Solutions, IBM SWG Group ISA.
In this era, businesses need to – understand and anticipate customer behaviour and turn insight into action, adapt supply chain based on customer demand and orchestrate seamlessly among trade partners and suppliers, market, sell and fulfill the right product and service at the right price, right time and place, and service customers flawlessly and learn from their behaviour to predict and take action. Successful companies are staying competitive and building consumer connect by leveraging analytics and transforming their approach towards marketing.
“Performance optimisation, not analytics,” said Prabhu Kannan, Director – Digital Commerce Capabilities, SapientNitro. CMOs want performance optimisation to connect with consumers, the question being how to team analysis with creative solutions. Turning analytics into performance is a four step process – capture data through tagging, organise data into information through reporting, analyse information to generate actionable insights, and take better decisions based on those insights to improve performance. Gains come from analysis and action.
Kannan elaborated on the difference between a fact (mere reporting) and insight (understanding through analysis) with an example. A study by the University of Leicester found that 52 out of 100 burglars wore Reebok Classics at the time of theft. This is a fact. The insight comes from delving into why they wore this particular shoe which came from the police, the experts who understood the context – these shoes are preferred as they are ‘lightest and quietest’. So, context and experience are crucial to consistently generating killer insights. Customers these days provide marketers with information about themselves and in turn, expect marketers to interact with them face-to-face across different mediums. Marketers should have the ability to engage the consumer. How do you nudge them to choose your brand over another? Analytics provides an experiential opportunity as it gives an understanding of how and when to engage the consumer and enables rich segmentation to deliver a personalised experience in real-time.
Bidyut Nath, Head – Customer Loyalty and Analytics, Titan Industries shared Tanishq’s case of creating a continued connect with customers. The brand has around 134 stores in close to 100 cities with the aim to reach more than 500 cities. Tanishq has managed to create a very strong bond between the sales staff and customers. In 2007, it launched a loyalty program ‘Anuttara’ which will have 2.5 million members by March this year. The need for customer connect was felt due to 3 factors – 40 per cent customers do not come back after enrolment, jewellery business is based very highly on relationship/trust factor, and environmental factors such as fluctuating gold rate, cheating in quality of gold, and dense competition.
“Instead of N=1, we believe N=1+ because they mulled over how every single name can be used to empower the retail officer to make that one sale in a remote state. So, instead of viewing our base of 2.5 million members as just vanilla plain, the brand put them into different brackets such as 18,000 Gujaratis, 31,000 Tamilians, 25,000 members with daughters of marriageable age and so on. This allowed personal engagement of RSOs (retail sales officers) with customers,” said Nath.
The business leaders were speaking at the inaugural edition of the Pitch Analytics in Action conference held in Bangalore on January 16, 2013. The session was moderated by Sunder Muthuraman, Managing Partner, Meritus Analytics.
Pitch Analytics in Action was powered by The Hindu Business Line. Dekhooh was Outdoor Partner for the event, CIOL.com was the Online Partner, Institute for Competitiveness was the Think Tank Partner, Marketelligent was the Knowledge Partner, and 24 Frames Digital was the Webcast Partner.