Customer intelligence and Social Media

Strategic Value of InformationCustomer Intelligence and Social Media

19 November 2013drs. Katherine Kucherenko

Cu!omer

Intelli#nce

and Social Me$a

80%Proportion of total online users who interact with social networks regularly

>1.5 billion Number of social networking users globally

70%Proportion of companies using social technologies

90%Proportion of companies using social technologies that report some business benefit from them

McKinsey Global Institute, “The Social economy: unlocking value and productivity through social technologies”, July 2012

The Mobile Decade

McKinsey Global Institute, “The Social economy: unlocking value and productivity through social technologies”, July 2012

58% of social media users say they write product reviews to protect other consumers from bad experiences, and almost one in four say they broadcast their negative experiences to “punish companies.”

60% of social media users say that consumer ratings and consumer reviews are their preferred sources for information about products and services.

State of the media: Social media report Q3 2011, NM Incite, 2011

More data cross the Internet every second than where stored in the entire internet jsut 20 years ago.

In 2012, 2.5 exabytes of data are created each day, and the number is doubling every 40 months.

Walmart collects more than 2.5 petabytes of data every hour from it’s customer transactions.

Twitter generated 10 terabytes per day in 2010.

Facebook generated 25 terabytes per day in 2009 in log files alone.

Zynga was generating 1 petabyte of data per day in 2010.

McKinsey Global Institute, “The Social economy: unlocking value and productivity through social technologies”, July 2012HBR, “Big Data: The Management Revolution”, October 2012

“We don’t have better algorithms. We just have more data.”

Peter NorwigGoogle’s director of Research

Facebook postTV reclameAdvertentieDirect mail

GoogleTwitterWebsite

WebsiteForaReviewsYouTube

TelefooncentraleWebsiteFourSquare/Pin

TelefooncentraleTwitterFacebookReviewKTVEmail

Customer Intelligence

Socio-demographic

Transactional

Contact information

LoyaltyValue

Online behavior

Social profile

Text

TextOnline behavior

Social profile

Contact informationDocumentationE-mails

Socio-demographicTransactionalLoyalty

Internal External

Stru

ctur

edU

nstr

uctu

red

Co-creation

Ways social technologies can

add value in organizational functions and

customer intelligence

CK Prahalad

Co-creation




Market research

Co-creation




Market research

Product development

Co-creation




Market research

Product development

Relationship building

Co-creation




Market research

Product development


Customer care

Co-creation




Market research

Product development


Customer care

Leads

Co-creation




Market research

Product development


Customer care

Leads

Cross- & Up selling

Online behavior

Social profile

Text

Employee

Dutch student

Other

Foreign Student

Attributes (red=yes,

black=no) : - Has Master Degree

- Has Bachelor Degree

- Related to human resources - Lives in Amsterdam

- Works in IT industry

- Speaks English - Speaks Dutch

- Is manager

The binary matrix data structure Machine learning algorithms

Socio-demographic

Transactional

Contact information

LoyaltyValue

Online behavior

Social profile

Text

“0.1% higher conversion rate results in additonal € 100.000 sales per month..”

HR professionals in the Eastern of the Netherlands carry 28% more chance to buy a ticket insurance then the rest of the customers.

Tweeter users who post anything about soccer game might be interested in a trip to a soccer competition.

Employee

Dutch student

Other

Foreign Student

+

Co-creation




Market research

Product development


Customer care

Leads

Cross- & Up selling

Segmentation & propositions

Co-creation




Market research

Product development


Customer care

Leads

Cross- & Up selling


Demand forecasting

Sentiment opTwitter

MeldkamerObjectinformatie

TekstanalyseTwitter

Incidenten-registratie

Basisregistrategie adressen en gebouwen

GSM dataHistorische gegevens KNMI

Sensoren

Website surfgedrag

TwitterGoogle

Sentiment

Betaalgegevens

KNMI

GSM data

CRMgegevens

Facebook

Inventory optimization

Tim SalimansData scientist at Algoritmica

Co-creation




Market research

Product development


Customer care

Leads

Cross- & Up selling


Demand forecasting

Market forecasting

Co-creation




Market research

Product development


Customer care

Leads

Cross- & Up selling


Demand forecasting

Market forecasting

Marketing communication

“Half the money I spend on advertising is wasted; the trouble is I don't know which half!"

Henry Ford

“Half the money I spend on advertising is wasted; the trouble is I don't know which half!"

Henry Ford

HE WAS W

RONG

Compared to

today’s

meadurem

ent

instruments,

more than 50% of

advertisi

ng spend was

wasted in th

e

early 2

0th century.

(Example)

Vastgoedmaatschappij

Bank Telco

(Example)

Co-creation




Market research

Product development


Customer care

Leads

Cross- & Up selling


Demand forecasting

Market forecasting

Marketing communication

Not exhaustive!

Masterclass ‘Big Data in de Nederlandse praktijk’12 December

Nyenrode Business Universiteitwww.DigitalDataDays.com

“A strong wind is blowing, that either inspires you or gives you a headache.”

Katherine the Great (1729 - 1796)

Source: George Day (1999), The market-driven organization, understanding, attracting and keeping valuable customers.

Integrating & Resourcing

CEO

GC

CCO

CFO

CHRO

CIO

CSCO

Procurement Vendor Selection

Strategic partnering & AlliancesChannel design

Channel Relationship Mng

Operations Manufacturing

LogisticsOrder fulfillmentService Delivery

Value Developing Value Delivering

Value Developing

Value Maintaining

Customer RelationshipManagement Managing Brand Equity

CustomerValue

Market Sensing& Intelligence

Selecting Target Markets

Strategic Planning

Finance & Recource Allocation

Selection &Talent

Management

Technology Selection &

Development

ICTImplementation

Architecture & Infrustructure

Strategic roadmap

Real-time analytics

infrastructure

Architecture & Infrustructure

Strategic roadmap

Listening Understanding Delivery

Gather structured & unsructured data to define intent, loyalty, influence, and sentiment.

Integrate and analyze all customer data and create valuable insights.

Deliver information and insights to management processes and enable employees to act quickly, decisively, and appropriately.

Real-time analytics

infrastructure

Data-driven companies are better performers!

Structured interviews with executives at 330 North American companiesPerformance data from annual reportsIndependent sources

Source:MIT Center for Digital businessMcKinsey Business technology officeWharton University of Pennsylvania

5% more productive

6% more profitable

Making profit is not an option. Making profit is a duty.

Prof.dr. H.Robben & Prof.dr. R. Moenaert

Thank You.

drs. Katherine Kucherenkowww.icons.nl

@katherinekucher

Customer intelligence and Social Media

Marketing

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