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their segment characteristics, then they need to apply an array of effective marketing mechanisms to deliver the right offer to the right customer at the right time at the right cost. Fortunately, there are commercial software providers with solutions to accomplish just those objectives for the CIO to evaluate in concert with IT organization s customers: Marketing automation software helps companies plan, automate, execute, and measure marketing campaigns. Advanced analytic software integrates with the single view customer database, as well as the processes and analytics used to assess customer value and profitability, to develop segments and appropriate cross-sell, up-sell, and retention programs. Interaction management software enables marketers to immediately respond to changes in individual customer behavior to execute realtime cross-sell, up-sell, and retention strategies. Sophisticated algorithms can track and recognize changes in individual customer behavior and create real-time triggers and alerts that enable businesses to take instant action. For example, upon an inbound customer phone call to a call center, the customer service representative can follow rule-based instructions to offer deals or offers to entice the customer to purchase more. Marketing optimization software helps companies model and assess the cost/benefit trade-offs of increasingly sophisticated and frequent customer communications. It can provide insight on how marketing constraints affect profitability and can recommend the best assignment of offers to customers to maximize profitability (or some other objective) given defined constraints. Though many of these software offerings are fairly new, the best ones integrate with marketing automation software to ensure a closed-loop marketing delivery system. The use of real-time customer behavior to improve customer retention and increase cross-sell and up-sell revenue gives companies an opportunity to take a major step toward one-to-one customer communications. Best practice CIOs increasingly take advantage of technology s ability to provide real-time data.
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chapter 6
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realigning the organization around customers rather than products
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Even when armed with fresh customer insight, companies fall short if this knowledge does not become a central part of the organization s everyday work activities and priorities. Where are companies dropping the organizational ball It starts with managing the customer experience. For example in a bank, from relationship managers and call center representatives to segment managers and ATM machines, the bank must deliver a positive and consistent experience to high-value and high-growth customers. In doing so, the entire organization works together to increase customer value, loyalty, and profit. The majority of companies continue to organize around product groups or lines-of-business rather than customer groups. Such organizational misalignments create poor customer experiences with real financial impacts. Organizational realignment around customer value cannot happen without technology. Fortunately, technology has matured to the point where it can collect and distribute the customer intelligence needed to keep employees focused on building customer value. When a breakdown does occur, it is because technology is not tied to a focused strategy of acquiring, retaining, and growing the right customers. The CIO can help correct this. Technology cannot do its job if the lines-of-business are working independently with separate solutions and business rules. Technology s role is to integrate data, processes, and people to gain a single view of customers. The best approach is to deploy a suite of solutions that deliver analytics based on rigorous data management. A single technology platform is the organizational backbone for rolling out business rules on how to identify and treat high-value and high-growth customers. In CIO jargon, some refer to this platform as a unified meta-data repository. CIOs must be moving their IT infrastructures so their applications and analytics can access data this way. Ownership, accountability, and performance measures are another important piece of the puzzle. It must happen at the management level and the customer-facing level. This is where the strategy maps and Balanced Scorecards discussed in 5 fit in. Once the company has accurate customer value scores and tracking mechanisms in hand, managers can
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