Chapter
THE PROFESSIONAL DOMAIN OF CUSTOMER INSIGHT
MANAGING CONSUMER INSIGHT
KEEPING CONSUMERS AND STAKEHOLDERS HAPPY –FROM RESEARCH,THROUGH MEASUREMENT, TO MANAGEMENT
INSIGHT AND KNOWLEDGE MANAGEMENT
CONSUMER INSIGHT AND MARKETING TRANSFORMATION
ORGANIZATION OF THIS BOOK
1 What is database marketing?
CHANNELS FOR MANAGING CONSUMERS DIRECTLY
HOW DATABASE MARKETING WORKS
PLANNING YOUR DATABASE MARKETING ACTIVITY
Retention and development
FUTURE VALUE OF CONSUMERS
APPLICATIONS OF THE CONSUMER DATABASE
WHAT A CONSUMER DATABASE IS AND WHY WE NEED IT
FACTORS THAT HAVE HELPED DATABASE MARKETING GROW SO FAST
THE STRENGTHS OF DATABASE MARKETING
Types of information on the database
DATA QUALITY AND MAINTENANCE
DOING IT YOURSELF OR OUTSOURCING
USING A DATABASE IN PRACTICE
APPLICATIONS OF DATABASE MARKETING
Data acquisition and development
WHO USES THE CONSUMER DATABASE –AND HOW
Power and water utilities,fixed and mobile telecommunications suppliers
Leisure and travel services
Non-profit and public institutions
Marketers of physical products
THE DEMAND FOR DATABASE MARKETING
THE SUPPLY OF DATABASE MARKETING SERVICES
3 How customer care and database marketing use customer insight
DATABASE MARKETING AND CUSTOMER CARE
THE MEANING OF CUSTOMER CARE
Focus on the consumer decision-making unit
The scope of customer care
Customer service and customer care
HOW DATABASE MARKETERS USE CONSUMER INSIGHT –STARTING WITH THE OFFER
HOW CHOICE OF MEDIA REQUIRES CONSUMER INSIGHT
Other ways to contact customers
How new media have changed marketing
4
Customer relationship management (CRM)
MANAGING THE RELATIONSHIP IN STAGES
WHY CRM IS IMPORTANT OR AT LEAST USEFUL
Customer management activity
Understanding consumers experience
Information and technology
HOW CRM IS EVOLVING TODAY
PERFORMANCE IS DISAPPOINTING
Senior executive ownership and leadership is required
Poor implementation –too much postulating, too little doing
Functional and departmental silos
CRM is ‘champion ’not culturally based
More skills and education are required
A belief that IT is a panacea
CUSTOMER EXPERIENCE MANAGEMENT
Designing the customer experience
The benefits of managing the customer experience
MAKING THE STRATEGIC SHIFT TO CRM/CEM
Broader systems and management issues
5
Consumer insight and market research
Psychographic segmentation
Other sources of segmentation data
Response-based segmentation
USING MARKET RESEARCH IN CRM
Where consumer insight can be used
MAIN RESEARCH TECHNIQUES USED IN GAINING CONSUMER INSIGHT
Observation,for example mystery shopping
Using market research in post-testing
Relationship performance requirements
APPLYING MARKET RESEARCH TO CUSTOMER BASE ANALYSIS
Loyalty,commitment and retention
The customer experience and timing of research
Other measures of consumer importance
The focus of research:consumers and staff
Research culture:‘If you can ’t measure it, you can ’t manage it ’
Client researchers where CRM is practised
6
Analysing computer data to get insight
PRODUCTS,PROPOSITIONS AND CUSTOMERS
CONCLUSIONS ON THE DEPLOYMENT OF ANALYSIS
Treating the consumer as an investment
Developing or enhancing the technical infrastructure
What data mining offers to marketing
The questions companies want answered
Some examples of data mining activity in marketing
Is data mining essential?
The methodology of data mining
Basic techniques of data mining
Data mining operations –for hypothesis or discovery-led work
WHERE DATA MINING IS TODAY
7 Using consumer insight in developing and retaining consumers
Supplier –consumer relationships
Consumer value –uncertainty and variations
Systems to deploy the consumer data
The meaning of customer retention
Definition of customer retention
Measurement of customer retention
Benchmarking customer retention levels
How well organizations use customer retention information
Other consumer information from the database
The special case of cross -selling
Research carried out relevant to customer loyalty
8 Sharing consumer insight – partnerships and loyalty schemes
WAYS OF SHARING CONSUMER INSIGHT
Data p V legislation and industry conduct guidelines
What influences the sharing of consumer insight
Why bother with loyalty schemes
The choice facing retailers
The benefits and costs of customer loyalty schemes
WHAT CUSTOMER LOYALTY SCHEMES INVOLVE MANAGERIALLY
Applied analysis of consumer data 5
An appropriate and sufficient business architecture
The customer service centre (CSC)
Integrating the loyalty scheme into the sponsoring company
HOW SOME LEADING RETAILERS ARE MANAGING THEIR LOYALTY SCHEMES
The Tesco Clubcard –an astute combination of outsourcing and insourcing
Jigsaw –a loyalty case study in consumer goods
The Nectar scheme –another example of outsourcing
After the honeymoon –the hard work begins
Consumer insight is the key
9 Privacy,risk, and good and bad consumers
PREDICTION OF GOOD AND BAD
Choosing consumers for positive and negative –treatment
Making the decision about acceptable exposure and missed opportunity
SOCIAL,POLITICAL AND LEGAL ISSUES
THE INTERNET,TRUST AND ALL THAT
HOW CONSUMERS FEEL ABOUT THESE ISSUES
IMPROVING THE QUALITY OF CONSUMER DATA MANAGEMENT SO AS TO COMPLY WITH REQUIREMENTS
GUIDELINES FOR DATA PROTECTION
10 Consumer insight systems
HOW TECHNOLOGY OPENS UP NEW OPPORTUNITIES
DATA WAREHOUSING,DECISION SCIENCE AND DATA ANALYSIS
E-BUSINESS INFRASTRUCTURE
WHAT HAS BEEN LEARNT FROM IMPLEMENTING NEW TECHNOLOGY
11
Organizing and managing consumer insight
THE PEOPLE INVOLVED IN MANAGING AND USING CONSUMER INSIGHT
The direct/database marketing manager
The direct marketing specialist
Customer data/customer insight management
The statistician,data analyst or modeller
Senior marketing management
MANAGING CONSUMER INSIGHT STAFF
Required skills and capabilities
The decision whether to contract out consumer insight
Selection of consumer insight suppliers
Managing the strategic relationship with suppliers
Appendix: The Market Research Society Code of Conduct
The Market Research Society
The purpose of the ‘Code of Conduct ’
The purpose of Guidelines
Relationship with data protection legislation
A.Conditions of Membership and Professional Responsibilities
B.ICC/ESOMAR Code of Marketing and Social Research Practice
How the ICC/ESOMAR International Code of Marketing and Social Research Practice should be Applied
Consumer Insight
：How to Use Data and Market Research to Get Closer
( Market Research in Practice )
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