The Kind of CEO Every Company Really Needs:Information-Driven Customer Equity Optimization
Your company doesnt necessarily need a renowned chief executive officer. However, customer equity optimization is a CEO whose time has come the technology tools and services are available to make it happen on an enterprise scale. The native integration of analytical intelligence with automated, eventtriggered customer contact is driving the evolution of customer management beyond a strict marketing campaign paradigm. Companies are now evolving their capabilities to stage-manage, direct and produce optimal customer experiences wherever they interact across the business.
What sort of customer experiences are optimal? Those created by personalized, compelling value propositions (optimal content relevance) delivered consistently across all channels so customers feel they are recognized and remembered wherever they interact with your business (optimal context relevance). Optimal experiences collectively result in highvalue- customer retention, which drives customer equity optimization the only CEO that generates sustainable competitive advantage and rising shareholder value over time.
Customer equity, defined as the total lifetime value of a firms customer base, is the only asset that matters, from a marketing standpoint, says Professor Roland Rust of the University of Maryland, one of the authors of the book Driving Customer Equity: Linking Customer Lifetime Value to Strategic Marketing Decisions (Free Press, 2000). He points out that to be truly customerfocused implies organizing the company around customer equity and its drivers. Rust was a key CRM speaker in 2003 at the Teradata Partners Users Conference, held annually, and was one of several marketing scientists representing the Teradata Center for Customer Relationship Management at Duke University.
Teradata CRM has long been recognized as the solution most able to execute on the profit and promise of customer equity optimization. When running on the worlds leading platform for information-driven business improvement, the enterprise Teradata Warehouse, any business can use Teradata CRM to create optimal customer experiences across the enterprise that increase customer equity.
As CRM transcends its marketing role and becomes an enterprisewide process, the common thread is that CRM must deliver clear and fresh insight into the fine nuances of customer relationships anywhere, anytime on demand. This differentiates the business as well as the individual conversations with each customer that continue over time. Customer equity is optimized as a business leverages Teradata CRM to create optimal customer experiences.
Teradata, a division of NCR, provides a wide range of enterprise-class customer management components that can be implemented quickly to help business users:
- Understand the economics of your customer relationships both today and in terms of individual lifetime value to better anticipate the migration of customer assets over time;
- Improve your ability to evaluate and use every customer interaction as an actionable marketing opportunity with automated, rules-driven lead management tools;
- Cultivate highly relevant and timely dialogues with customers across all channels, including the e-channel, for better strategic brand and customer equity management;
- Communicate and deliver differentiated value by improving the quality of customer experience every time the customer touches your business;
- Master sophisticated multistep and eventbased marketing and know when customers are most receptive to offers and messages;
- Intelligently manage your e-channel to drive revenue growth across all channels; and
- Leverage the full power of your Teradata Warehouse assets and capabilities.
Teradata CRM is a multichannel customer management solution that combines analytical intelligence and marketing automation to drive relevant, timely content into operational systems. Teradata CRM helps companies build customer equity and act on new revenue and profit opportunities across all channels by:
- Providing the power to optimize customer relationships with a common understanding of individual customers, generated from detailed data at the interaction level;
- Enabling personalized dialogues with individual customers driven by deep analytics, modeling and event triggers;
- Delivering the power to grow individual customer value through more intelligent marketing campaigns, prioritized communications across channels and nearreal- time responsiveness; and
- Providing modular CRM software solutions,, with many functionality entry points Teradata CRM offerings can easily grow with company needs as they increase and become more sophisticated.
With Teradata Profitability Analytics you will know the real value the profit contribution of each customer, product or organization in your business. You can then better manage and measure customers as business assets.
Teradata Warehouse Miner provides a rapid and reliable means of discovering and interpreting previously unknown patterns in your customer and process data to solve business problems and provide insight for more effective decisions and actions. With Teradata Warehouse Miner youll dig deeper into your enterprise data to perform sophisticated analytical modeling and generate new strategic insight as well as new marketing opportunities.
With Teradata E-Marketing you will increase the effectiveness of your online marketing, lower marketing costs through optimal leverage of your online channel, better collect and integrate detailed Web data with data from other channels, and extend your business intelligence across all channels, wherever your customers touch your business.
The active Teradata Warehouse handles complex analytic workloads with extreme service levels faster and more effectively than any other database engine.
Teradata CRM Clients Realize Dramatic Returns
Teradata CRM clients across the world have reported rapid and significant ROI and business results, although many regard their CRM strategies and tactics as closely guarded secrets.
A Leading Insurance Carrier
Used Teradata CRM for deeper analysis of customer data and automation of customer cross-sell, acquisition and retention campaigns. In the first year, the carrier executed eight new retention programs and six additional leadgeneration programs. It also was able to start emailing cross-sell leads to agents for follow-up directly with customers. Moreover, it was able to integrate Web customer interaction data with customer data from other channels and finally, capture ROI metrics by channel and the effectiveness of marketing campaigns over each channel. The benefits of the Teradata-driven campaign-automation/lead-generation programs have been documented by the carrier at over $2 million in 2002 and over $7 million in 2003, with $18 million in benefits projected for 2004.
A Major International Airline
Using Teradata CRM rolled out an integrated campaign management solution to a user base in multiple locations in less than four months. Teradata CRM is linked with key operational data such as flights cancelled, number of bags, time delays and type of check-in. As a result, the airline does faster and more effective segmentation, and it benefits from increased efficiencies with more sophisticated marketing communications. It also reports:
- Email campaigns up from 288 in 2002 (pre- TCRM) to 632 in 2003 (post-TCRM);
- Over 600 campaigns in a 12-month time frame, addressing 4,000 to 5,000-plus customer segments;
- Reduced marketing costs through use of cheaper channels and better targeting;
- Rapid query response times and improved timeliness to execute; and
- Fewer analysts required (reduced from eight full-time equivalents to three).
To learn more, visit www.Teradata.com.
