Customer lifetime value was traditionally synonymous with marketing activities and a necessary step to optimizing campaigns, advertising and related brand protection activities. But when applied across a holistic view of the customer or customer cohorts, the value calculated becomes an input to revenue management. Swinging from Marketing to Finance might explain why larger institutions are struggling to apply it. A deeper end-to-end analysis reveals why more than just sound management practices are needed.
In this multi-part blog, we explore how NexJ CDM can accelerate your collaborative marketing activities. As we saw from, “Six Ways to Improve Customer Loyalty”, I think we can all agree that data and analytics are an integral part of any successful marketing program as they’re vital to understanding and personalizing the customer experience. And that doesn’t change with today’s digital consumer but the demands are increasing at an exponential rate. Engaging your connected customer at the right time with the right message is surely a key step and an integral one for any digital strategy. Knowing which customers are profitable helps to prioritize marketing initiatives, so this sounds like a great starting point.
Most organizations have silos. Silos empower and focus assigned resources to work priorities, deliver important work, and encourage teamwork through responsible commitment and follow-up activities. These are all very good things! But they have a negative impact as well: data tends to be siloed as a result. Silos make sense because protecting data assets is an important aspect of overall data security. Nobody wants a leak or an exposure event that ends up in the news. And a dedicated, well focused team can ensure that too. Sounds like a win-win so far.
The challenge comes when you need to combine that data, or just some aspects of it, across many silos. Coverage analysis for insurance carriers, opportunity analysis for wealth management, or complex deal analysis for corporate banking are all typical industry examples.
A customer may or may not participate in many product or service offerings across the organization. And through time, or through legislation, or through mergers and acquisitions, pieces of that customer and their associated transactions land in different areas of responsibilities. Differing departments or working teams have created many data silos. All for organizational improvement or compliance initiatives.
Measuring customer loyalty, or understanding retention patterns, historical purchasing or associated revenue or profitability needs data from many siloes. How should we acquire this data? Can we leverage the siloes that exist today or do we need to create another organizational unit? Who has the rights to the consolidated data and what corrective actions are they entitled to?
Join us next time for Part II: Gleaning Insights Across Silos when we discuss how best to leverage existing organizational efficiencies to improve responsiveness.