Not Your Typical Marketing Campaign

Perspective Klaus Hölbling Olaf Acker Florian Gröne Not Your Typical Marketing Campaign The Next Wave of Technology- Driven Marketing Contact Information Vienna Chicago Klaus Hölbling Mike Cooke Partner Partner +43-1-518-22-907 +1-312-578-4639 klaus.hoelbling@booz.com mike.cooke@booz.com Frankfurt New York Olaf Acker Jeff Tucker Principal Partner +49-69-97167-453 +1-212-551-6653 olaf.acker@booz.com jeffrey.tucker@booz.com Berlin Beirut Florian Gröne Ramez Shehadi Senior Associate Partner +49-30-88705-844 +961-1-336433 florian.groene@booz.com ramez.shehadi@booz.com Booz & Company EXECUTIVE In a world overrun with marketing messages, the next wave of marketing technology will cut through the clutter, building SUMMARY automated marketing campaigns that address your customers’ wants and needs individually. The result: greater customer intimacy, improved loyalty, and higher revenues. Moving quickly will gain real competitive advantage for you, so start planning for the future now. Here’s how. You’re in the middle of a business generation marketing IT: the new trip. You’ve left your cell phone wave of technology-driven marketing. charger at home, your phone’s battery is dead, and a big client is calling Here’s how it works. While your you in two hours. So you make phone is charging, the sales agent your way to your mobile operator’ enters your phone number into the nearest retail outlet to buy a new sales terminal, activating the customer charger, and maybe a battery too. relationship software maintained on a You walk in, hoping to complete this global network. Its purpose is to help tedious errand quickly. Much to your the clerk recognize your individual surprise, you walk out 20 minutes needs and predispositions, and to later with a complete travel kit, offer you products likely to interest including a spare charger, a battery, you. While you wait, the program and a three-month trial subscription brings up your record and identifies to the mobile company’s basic e-mail you as a high-value client, who makes and Internet service package. How a lot of phone calls and occasionally did that happen? Chalk it up to next- runs over your monthly allotment. Booz & Company 1 You also do a lot of text messaging, in the information he or she receives marketing technology architectures, regularly check your account online, from the computer. It tells the sales with three primary goals in mind. The receive your bills via e-mail, and have agent precisely what to offer you, first goal is the ability to instantly an up-to-date, multimedia-ready based on the statistical likelihood collect data from a variety of phone. that you (or people like you) will be channels—including retail outlets, the interested in the product or service. Web, or and the call center—and then The system analyzes this information Under the circumstances, how can to distribute relevant information for a few seconds and then, based on you refuse? You’re surprised and back to those channels. The second pre-calculated scores, the campaign delighted by the travel kit, which in is the capacity to compile and engine determines that you’re likely turn makes you feel more loyal to the generate a coherent view of every to be an early adopter: the sort of company. Like many “high-value” customer, taking into account his or person who is willing to try new users of the online trial, you will her histories and preferences. And the technologies. In addition, the loyalty probably end up keeping the e-mail third goal is the creation of business generated by the free travel kit should service, at the non-discount price, for rules that will govern every customer makes it less likely that you would many years to come. interaction, including which messages switch to a competitor, increasing to send and which deals to offer. your expected “high-roller” lifetime None of those decisions—or the That’s a tall order, and the only way value to the company by a significant business results that followed—would to get there is to make sure CIOs percentage. The system leads the have been possible without the help work closely with marketers to lay agent, step by step, to make you a of the next generation of marketing out the overall marketing strategy, series of offers. A natural talent for technology. These new forms of and then to translate it into the salesmanship may play a part in the information technology require a processes and rules that will play out agent’s success, but the real secret lies transformation of current direct at every point of contact. These new forms of information technology require a transformation of current direct marketing technology architectures. 2 Booz & Company IN MARKETING, Consider how much more value your visit to the shop generated for the rules-based software engines, and tailored to a “segment of one”—that KNOWLEDGE phone company than a traditional individual business traveler standing IS POWER marketing campaign would have. Before that visit, you might have in the shop with a dead phone, for instance, or any one of hundreds of received dozens of generic mailings, other people with different attitudes at great expense, from the phone and needs—making the right offer to company. None of them illuminated the right consumer at the right time your individual needs and interests. (see Exhibit 1). And you probably threw them all away with hardly a glance. Next-generation campaign systems will give marketers the ability to What are those traditional marketing integrate data into their calculations campaigns missing? They lack the from all touch points—the Web, the analytical rigor, driven by information phone, the physical retail outlet— technology, that might allow the through which they interact with company to establish a better their customers and learn about them. dialogue with its customers. The next With that knowledge, marketers generation of marketing campaigns can also design flexible, real-time can go beyond today’s rough efforts “inbound” campaigns that listen at customer segmentation, using actively and respond to customer IT to gather much more refined behavior and preferences. Should a perspectives on customers and their customer complain about a product in behavior. Messages and offers can an e-mail or during a customer service be generated through dynamic, call, for instance, the business rules Exhibit 1 The Next-Gen Campaigning Equation PAST DATA ABOUT THE CLIENT CURRENT DATA ABOUT THE CLIENT SUPERIOR RESPONSE TO CLIENT NEEDS • Products bought • Contact reason (such as product • Positively surprise clients with tailored + = • Usage patterns inquiry or complaint) offers and superior customer service • Past complaints • Customer touch point (e.g.