Create Value From Fast Data to Improve the Customer Experience

Value creation is an essential concept in marketing. When creating value, it’s not enough to rely on communication techniques, to send fancy messages, and to surprise customers at unexpected times or be completely technology-oriented. The company needs to meet customers’ needs by offering a product or service to target groups with the appropriate value proposition. Ultimately, the marketing department’s job is to reach the right customer by providing the right product/service, right on time, from the right channel.

Today, this combination is difficult to capture. In addition to the many firms, products, services, and communication channels, consumers’ changing expectations makes it difficult to maximize the solution.

One of the most important parts of the equation—the ability take action at the right time—is essential. The longer the time between securing the opportunity and taking action, the less commercial value you create. The use of marketing automation tools, analysis tools, and data mining tools creates customer segments in traditional marketing operations and provides special offers to these segments. Target customer lists from these campaigns are taken from marketing data and are transmitted to the appropriate channels with these tools.

These processes can take a very long time because of internal policies and procedures. This extended period of preparation reduces the commercial value of the action dramatically. For example, a customer who is offered a credit card limit increase might abandon the bank by the time the offer is processed or might no longer fulfill the limit increase criteria. Similarly, if the connection to a mobile telecommunication client is operator-disconnected, a 1GB additional data gift with an apology message should be offered within a few minutes of the connection being re-established. The shorter the delay, the more positive the influence on the customer will be.

Today, there are technological solutions that can facilitate this process, and their use is increasing rapidly. A good example is Event Stream Processing, part of Gartner’s Data Science Hype Cycle*.

* Hype Cycle for Data Science, Gartner, 2016, Published: 25 July 2016, Analyst(s): Peter Krensky, Alexander Linden, Jim Hare.Event Stream Processing solutions not only detect fast data flows but actually turn them into instant campaigns and similar targeted actions and then automatically report the results of these actions.  In this way, companies contribute to the realization of marketing and sales targets with the scenarios that they create while simultaneously improving the efficiency of their operational processes.Today, as a result of mega-trends such as the internet of things (IoT), AI, machine learning, and the increase of digitalization in general, organizations such as banks, telecom companies, cable television operators, and large retail and hotel chains need to invest more in stream-processing solutions.Event Stream Processing helps companies make a difference through better customer experience and the shorter payback periods of marketing investments.Applying this Approach in Retail A retail store chain that uses fast data knows when users are shopping, understands what they are interested in, and instantly provides new offers that users can take advantage of.Offers could can be in the form of reward points loading, campaign offerings, or an informational message. For example, when a customer visits the store to shop for children’s products, s/he  can be offered special value promises related to children’s products while in the store.One of the most essential values of this approach is to ensure an instant campaign offering when the customer is at the point of purchase. Stream-processing-Fast Data solutions can do this by synchronizing campaign data with location data. This gives retailers the opportunity to make “location-based marketing” one of the most critical marketing trends of our time.Providing the right products and services with the right value to the right customers requires the proper use of such technologies to make marketers’ jobs easier. AI and machine learning enable these systems to become self-learning and actionable. It is necessary to evaluate and give the appropriate action while the data is flowing in the air. Companies that follow and implement these trends in the coming years will realize the impact.As the Chinese proverb suggests: “When the wind changes, some people build walls; others build windmills.”

About the Author: Ersegün Koçoğlu has 21 years of experience in marketing, product management, CRM, channel development and business development, with a primary focus on financial services. He has an Executive MBA degree and is currently attending the Management of Enterprise Data Analytics certification program at the University of Toronto. Ersegün is a member of the Customer Insights & Analytics Council of The Canadian Marketing Association.

By | 2018-04-03T20:23:20-04:00 March 30th, 2018|General|0 Comments

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