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Big data is useless – small data is key

Craft customer experiences that drive recommendations (word-of-mouth) and sales

 

As an SME, how can you push the boundaries of your organisation? How do you extend the value of your organisation’s products & services with limited budgets?

The phrase big data is thrown around in every sector and has exploded onto every touch point for business growth, in reality, it is small data that is key. For every business large or small, it is really all about your customer, when a customer has a business problem what do they want to see? Your customer can see millions of products and millions of solutions. But what is it that your customer really needs?

Impact of word of mouth across various stages of the purchase process

We know that:

For an SME, one of the most important factors that drives your business growth is strong recommendations or word of mouth.

As recommendations are a key influencer across all stages of a purchase process; from being initially informed of a product or service through to the concrete purchase decision, you need to engage your customers with above average experiences and build positive feedback properties or word of mouth equity. This can increase the stickiness of a sale and improve the repeat purchase potential of customers.

impact_of_word_of_mouth
Figure 1: Mckinsey: Impact of word of mouth – across various stages of a purchase process.

It is reported that 8 out of 10 purchases are influenced by a recommendation by people talking face-to-face. And every product or service category  (regardless of price point) is usually influenced by friends, family or colleagues rather than more expert sources. The ‘experts’ matter more when seeking advice in technical categories such as digital cameras or cars.

 

So where do you focus for word of mouth marketing?

For an engagement to happen you need to:

  1. First identify the close & trusted set of customers that you can work with.
  2. Understand if they would recommend your product or service to others.
  3. Extract the genuine reasons behind being a promoter or a detractor.
    a.These reasons should not be ambiguous and should be a quantifiable indicator regarding the product design, service delivery or the pricing.
  4. Identify the key influenceurs of the group which you need to focus on to drive the word of mouth recommendations.
  5. Also identify the key influential detractors in the group whowould need to be converted to a promoter.

 

word_of_mouth_marketing

Figure 2: Mckinsey: Where to focus on for an Effective Word of mouth for a Brand.

How do you measure word of mouth marketing for customer engagements?

 

Your objective is to have an understanding of how customers’ experiences are influenced by their overall loyalty so you can figure out ways to improve those experiences. How do you use small data for a competitive advantage? Hence for me it is about my customer’s customer.

It’s not about presenting a billion items and handing over an inventory or your encyclopaedia of solutions, it’s about presenting a highly relevant experience for your customer.

customer_engagement

 

Connect the Dots and encourage your customers to be great!

Sheejo

Sheejo Arvind, Practice Lead – Customer solutions (CEC) at Invenio Business solutions has 9 years of strong SAP Consulting experience, and 6 years of extensive sales experience including the implementation of SAP CRM Sales specific scenarios, delivered key billing revenue & innovation management (BRIM) solutions, actively engaged with Customer engagement & commerce solutions.

 
 
 
 
 
 
References:
  1. Ed Keller
  2. The Face-to-Face Book:  Why Real Relationships Rule in a Digital Marketplace
  3. Mckinsey

Watch out! Competitors are now aiming to engage your loyal customers, what can you do?

Customers can now exercise their might through strong online research and an even stronger feedback, you possibly would have experienced this too. The objective is clear for any business, ‘How can they identify the right set of customers for their key products and service offerings to improve their market share and margins’? This is the core to the businesses success.

However, there would be an internal IT team who have already invested and implemented legacy solutions to provide their business with just that.

So what has changed?

The expected turnaround time.

Businesses now expect their customer relevant analytics to be delivered right now, not in months from when they place their requirement, even more they want to analyse & fine tune it themselves.

Imagine your business or customer now requires you to:

1. Classify customers according to their contribution to your total revenue.
2. Then provide an exact breakdown of the customer-related margin, pocket margin and gross margin, which provides crucial information on discounts, surcharges and costs.
3. They then want a customer rating scorecard, which is based on several key performance indicators (KPIs) that are derived from the source data and calculated against a peer group.

Assuming the legacy systems are in place, this would be a two month timescale of a business intelligence & data warehousing project with the potential to extend beyond six months if the right solution is not put in place.

What if we could deliver this analysis within seconds? Irrespective of the data complexity & the volume of data.
customer_engagementThere are customers across the world who are utilising these solutions and driving your loyal customers towards their products and services, they are using this solution to create effective personas and actively engage with them through the right channel to ensure their patronage.

Invenio business solutions, provides you with services tailored around SAP Customer Engagement Intelligence to maximise the value of your promotions and marketing engagement to drive revenue. Our approach to deliver this solution provides a guaranteed delivery within weeks.

Keep an eye out for instalment of this blog by Sheejo Arvind.

SheejoSheejo Arvind, Practice Lead – Customer solutions (CEC) at Invenio Business solutions has 9 years of strong SAP Consulting experience, and 6 years of extensive sales experience including the implementation of SAP CRM Sales specific scenarios, delivered key billing revenue & innovation management (BRIM) solutions, actively engaged with Customer engagement & commerce solutions.