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5 Predictive Analytics Models that Fuel Customer Engagement

As marketers, we are constantly put in the positon of trying to anticipate a customer’s next move. It is an important part of modern day marketing strategy and when it comes to ways that help us stay ahead, or at least in step, with customers, predictive analytics are our friend.

Using historical and current data, and statistical algorithms we can create predictive models which identify the likelihood of different customer engagement outcomes. And with artificial intelligence, these models can be perfected-learning overtime.

A Variety of Predictive Models Inform Different Customer Engagement Strategies

Models can help us qualify and prioritize customers based on future lifetime value or determine what product or offer is the most appropriate for each customer, at a given point in time. There are a variety of predictive models. We’ve listed some of the most common and why they’re effective.

  1. Churn Prevention. Churn prevention models encourage better customer engagement and loyalty because they identify churn warning signs as they arise. These models are created from abandonment traits — a predetermined set of variables that (historically) indicate that a customer is about to disengage or from our brand. By creating a churn model, we can easily anticipate which customers are at risk of leaving and stage an appropriate intervention to keep them both satisfied and engaged.
  2. Customer Lifetime Value. Customer lifetime value (CLV) models are fashioned from a variety of behavioral, demographic, and psychographic variables to help us predict someone’s propensity to be a high-value customer. Essentially, this model infers a customer’s future value from their current level of engagement and defining characteristics. It then evaluates how much revenue they are likely to contribute long-term. CLV models can become more complex than just measuring purchase over time. Variables can also be drawn from certain behaviors like social shares and referrals, where the value of the customer extends to their ability to convert others.
  3. Next-Best Action. Next-best action models help us understand what a given customer is likely to do next. They help encourage certain actions and can be programmed to be ready with a relevant offer. Next-best action is determined by evaluating a customer’s expectations, needs, and interests and our objective for that customer.
  4. Product Propensity. Product propensity models look at a customer’s purchase activity to determine new audiences for a particular product or service. By discovering correlations in a customer’s purchasing activity and leveraging predictive analytics, we can target new audiences with a high propensity to purchase the product or service thereby driving revenues for that product or category.
  5. Cross-sell and Upsell. Cross-sell and upsell models focus on what’s in a customer’s shopping cart. Amazon’s “you might also be interested in…” and “often bought together…” prompts are good examples of using insight gained from cross-sell and upsell analytics to inform a bundled pricing strategy (selling multiple goods as a single unit so that the sale of one item buoys the sale of another).

Keeping the Big Picture in Mind

With all predictive analytics models, it’s important to understand how each model interacts to form a bigger picture. The critical factor, as always, is being able to adapt our strategy to meet changing customer needs and expectations. Predictive analytics models provide an accurate, reliable and adaptable strategic guide and tool — but it’s still up to us to follow through on the insights found within the data with creative communications. At the end of the day, any model we use should be done so with the overall goal of increasing revenue and lifetime value of the customer.

To find out more about how predictive analytics can fuel customer engagement download our eBook, The Value of Context, Cross-Channel and Real-Time Capabilities: Advancing Marketing’s Productivity.

About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.

 

 

Cross Channel Marketing versus Multi-Channel Marketing

Have you noticed that the success of your marketing efforts is diminishing over time, even after optimization and testing efforts? It could be because you are choosing the wrong execution channel. And, because your customers interact with your company across several channels (and devices) you are missing the opportunity to be heard. In this sophisticated customer environment, we need to execute our messages cross channel to engage our customers. We need a cohesive and consistent story executed where the customer is, at any point in time, on whatever platform or device the customer is using.

Cross Channel and Multi-Channel Marketing are not the Same

Multi-channel means having a presence in, and on, more than one channel or platform. Multi-channel is a silo-channel approach — meaning strategy and execution happens in individual channels (a vertical approach). Cross-channel means we are seamlessly and interchangeably marketing and interacting with our customers irrespective of the channel or device. Cross channel embraces the whole customer journey. It is cross channel capabilities that are needed to deliver the types of personalized experiences our customers demand.

The Customer Journey is Our North Star, Not the Channel.

This important capability empowers us to track customers as they use multiple channels (and devices) to make decisions to purchase or interact. Cross-channel orchestration enables you to design and execute marketing messages that match the customer’s path. When you can match the customer’s path, you increase the likelihood your customer will engage and respond.

According to Forrester, customers will pay more for a better experience. The personalized experiences we can create with cross channel orchestration are welcomed by your customer and they are more likely to engage further, increasing the probability of greater loyalty —so customer lifetime value increases along with customer satisfaction.

To find out more about how to increase customer engagement, loyalty, and lifetime value, download our newly published eBook; The Value of Context, Cross-Channel, and Real-Time Capabilities: Advancing Marketing’s Productivity, here.

 About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.

 

 

Mastering Customer Engagement at Scale

To be successful in today’s customer centric landscape, marketers must master customer engagement. Mastering anything is a journey. The first lesson of mastery is that we are always learning and that is certainly the case when it comes to mastering customer engagement. We need to be willing to embrace new approaches and different technologies that enable personalized, contextual experiences.

Closing the Divide

Yet there remains a large gap between customer engagement strategy and the ability to tactically execute.  Too many of us continue to struggle with legacy tools, lengthy processes for segmentations, analysis and scoring…far from our vision for real time personalization. If we’ve learned anything these past few years, we’ve learned that customer engagement success requires a holistic approach in both strategy and execution.

Creating Order and Simplification on the Road to Mastery

Thomas Mann famously said, “Order and simplification are the first steps to mastery of a subject.” For marketers looking to succeed this means taking a step back to assess what your capabilities are now – people, process, data, and technologies – and determining the solution that is right for you and your company.  Only from this understanding can we create an ordered, simple, and holistic plan to master customer engagement and deliver quick wins for our brand,

If you are attending CRMC, please join us for our workshop, Achieving Customer Engagement Agility in a Real-Time World. The workshop includes hands on, interactive exercises to help you evaluate your current capabilities and explore new generation technologies and solutions that are right for you and your company.

About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.  We’ve made it our mission to help marketers advance and thrive.  Learn more about us at veracentra.com.

 

 

Real-Time Customer Engagement Campaigns. Easy or Not?

Everyone’s talking about real-time customer engagement and we all know we want to move our customer engagement campaigns in this direction. However, like any “new thing” it has this mysterious and elusive jargon. Added to this there are many providers selling it. The upshot — finding a solution can get overwhelming very quickly. How do we weed through this complex landscape, to get our customer engagement campaigns ready for real-time, without being overwhelmed by the jargon and the multiple possibilities available to us?

Breaking Real-Time Customer Engagement Down.

If you peel away the jargon and the buzz words real-time customer engagement campaigns are not as overwhelming as they first seem. It is about finding relevance at the intersection of the customer, your business, and time.  It’s understanding what you can offer that is relevant to your customer at just the right moment. How do you get there?

This can be achieved manually with one-time targeted messages or with automation leveraging data to trigger 
the best message, or offer, in a customer’s ideal or preferred channel at exactly the right time for the customer. In practice, real-time marketing is a spectrum extending from manual to automated effort; manual, triggered, dynamic, and adaptive. What is needed are campaigns that move us along this spectrum and before we know it we’re there; executing customer engagement campaigns in real-time.

RedPoint Global offers a straightforward way to view migrating to real-time customer engagement campaigns.  This simple approach and practical examples of effective real-time customer engagement campaigns are outlined below.

 

ManualTriggeredDynamicAdaptive
Inject ideas or messaging into widely covered events, news stories, or comments to generate viral media coverage.Trigger pre-configured communication actions across one or more channels based on action taken by an already engaged audience.Using customer data, adapt content based on the context of the customer interaction on one or more channels, (and/or devices) the customer interacts with during their journey.Use customer data from online and offline interactions to predict and trigger a next best communication or offer across any customer preferred channel or device.

How to Move Across the Customer Engagement Spectrum.

Practical Examples

ManualTriggeredDynamicAdaptive
Examples: News-jacking and humorous responses to negative sentiment.

Case in Point: Arby’s was retweeted 81k times after posting “@Pharrell can we have our hat back?” during the Grammy’s.

 

Examples: Welcome emails, retargeting, and cart abandonment campaigns.

Case in Point: Boot Barn achieved a 12% lift in revenue after implementing a series of personalized emails to customers who abandoned their carts.

L’Oreal Paris engages site visitors with interactive questions about hair color, eye color, and personal beauty concerns. As users interact the site experience dynamically updates with products and tips based on the visitor’s information. First time visitors are offered free product samples (shipped to their home address).Examples: Personalized messaging on online based on interactions in offline channels (purchase, inquiry, product sensor).

Case in Point: CPG company uses in-home IoT device sensors to see when a customer is low on product refills. This triggers an email/ SMS as a reminder (customer has opted-in). If no action is taken, a personalized direct mail coupon is sent to customer’s home.

Reading through these examples, my guess is, you are realizing that, on some level, you are already engaging your customers in real-time. Your next step is to think about how you can advance your campaigns along the spectrum, gaining in-depth knowledge of each customer’s triggers and how to respond to them with relevant campaigns, offers, and messages that reach them at the right moment, in the right place.

To find out more about how you can advance your customer engagement campaigns, download VeraCentra’s e-book,

Five Ways to Kick Customer Engagement into High Gear. 

About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.  We’ve made it our mission to help marketers advance and thrive.  Learn more

 

about us at veracentra.com.

Orchestrating Customer Journeys. A Modern Approach to Engage Today’s Customer

One thing is for certain, marketing practices are constantly evolving. Just when we think we have a real handle on our customers, and we are doing everything we can to execute marketing that delivers a great customer experience… something changes.  The biggest change lately? The customer. They always seem to be one step ahead of us… interacting with our company using multiple devices and “showing up” in channels and moments that constantly surprise us.  So now we need to ask ourselves, how can we get our marketing to be in lock step with our customers?  Say hello to today’s newest marketing method, orchestrating customer journeys.

What is Orchestration?

Orchestrating customer journeys is a more modern approach to journey execution.  Today, journeys are mostly executed in a single channel, primarily email or direct mail.  Orchestration goes beyond a single channel.  It’s more than an event or calendar- triggered automation. Orchestration connects multiple interactions across any channel to form a personalized customer journey and experience.  The method is rooted in customer centricity practices; focusing on the customer first, versus pushing targeted product or service messages to customer groups. Orchestration combines both outbound and inbound messaging, enabling us to respond with personalized interactions in real-time, based on when, where, and how the customer behaves.

Making the Shift to Orchestrating Customer Journeys.

Implementing orchestration requires a holistic approach to customer strategy coupled with high levels of marketing agility.  Studies confirm that you are far more likely to achieve a high impact on your overall engagement and retention goals with a holistic customer approach. (See the full results from our Forrester Consulting study: Fulfilling the Relevancy Promise by downloading here).

You can begin to shift to an orchestrated customer journey approach by:

  • Creating a customer first culture. Put your customer at the core of your business.
  • Organizing your teams around the customer lifecycle. Journey orchestration needs the power of models and cross-functional processes to facilitate the creation of consistent customer experiences.
  • Adopting the customer journey mind-set: Leverage available analytics to understand each customer’s journey across all channels.  Create a sequence of interactions designed to connect with them in the moment, as they engage.

Critical and central to creating marketing agility is investing in the right enabling technology.  The two largest components to consider are being:

  • Data ready: Data is the engine that drives customer engagement and real time interactions. Invest in a customer data hub or platform that cleanses, transforms, and provides a single customer view https://www.veracentra.com/360-customer-profiles/
  • Real-time ready: Engagement platforms need to include the ability to execute and respond to customers across all channels, in real-time. In line analytics are needed to achieve scale. Look for an easy to use journey design or workflow interface.

Orchestrating customer journeys provides you with improved marketing efficiency, better ROI on your marketing spend, greater optics into marketing performance, more revenue, and of course… awesome customer experiences. With value this great, migrating to this more modern method is an opportunity that is hard to ignore.

About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.  We’ve made it our mission to help marketers advance and thrive.  Learn more about us at veracentra.com.