260 261
how sales and marketing works
Information management
“Once you understand
customer behavior,
everything else falls
into place.”
Thomas G. Stemberg
Good customer
Returns frequently to
make repeat purchases
Responds to marketing
and in-store promotions
Shares favorite products on
social media networks
Signs up for newsletters
and special offers
Bad customer
Bombards call center
with complaints
Frequently returns products
for full refund
Never joins loyalty programs
or signs up for newsletters
Spends less money than
the cost of courting them
Assessing customer profile
Three ways to use a customer profile
Tailor content to suit customer By sending out
personalized messages and experiences, businesses
engage customers and build a long-term relationship.
Sell more to existing customer Mining customer
profiles to see their spending habits, likes, and interests
enables marketers to make personalized offers.
Reward loyal customers Identifying good customers
and offering gifts and incentives tailored to their tastes
increases customer lifetime value.
1
Managerial and
professional
Middle management
Clerical and junior
management
Skilled manual workers
Working class
Non-working and
low-paid workers
2
3
Once marketers have gathered data
and identified their ideal customer
profile, they can compare their
customer to a number of commonly
used systems of segmenting, or
characterizing, consumers. In the
US, there are many systems, but one
of those most well-known is that of
the Nielsen company, which uses
more than 60 segments that have
names like “Boomtown singles”
and “Up-and-comers.”
In the UK, customers may be
compared to the simple system
of socioeconomic class:
SEGMENTATION
SYSTEMS
Omnichannel customer
Consumer who shops using
multiple channels, including
store visits, mobile apps,
and websites
Loyads Customers who are loyal
to a provider and champion them,
bringing in other customers
in the process
360-view Profile that gives
marketer a complete picture of
a customer, making it possible to
predict their needs and behavior
NEED TO KNOW
A
B
C1
C2
D
E
US_258-261_Customer_Profiling_Steve.indd 261 21/11/2014 16:40
Big data vendor
Provides services, systems, and
tools enabling companies to
store, access, and analyze data.
Vendor offers applications to
suit individual business needs.
Big data
The volume of data is potentially so
vast it cannot easily be moved and
may overwhelm most organizations.
How it works
Big data is the huge amount of digital information
transmitted via the internet every day. It is streamed
at high speed and in many different formats, from
database statistics to video, audio, and email
Big data
documents. The challenge for most organizations is to
sift through big data to find information that has the
potential to add value to their business. Software tools
are now available that can analyze the masses of
external data generated on the internet.
Internally and externally mined big data
Businesses are now able to access data from sources such as mobile
communications, social media networks, and commercial
transactions, which show the activity of billions of people.
E
x
t
e
r
n
a
l
d
a
t
a
s
o
u
r
c
e
An ever-expanding amount of data is being
generated by outside organizations, which
will prove increasingly valuable to businesses.
Social media
Data monitors what people are saying about the
organization and its products.
Audio
Data includes news broadcasts, interviews, call center
recordings, and podcasts.
Photos and video
Data comprises blogs, images, video recordings
from entertainment media, and surveillance.
Public data
Information shared outside
the company, such as press
releases, job descriptions,
and marketing materials.
Business is trying to harness the huge amount of consumer data now
available online. This information can be analyzed and used to create
detailed profiles to target customers more precisely.
Big data
store
US_262-263_Big_Data_Steve.indd 262 21/11/2014 16:41
262 263
HOW SALES AND MARKETING WORKS
Information management
38%
of marketers had a
centralized database for
customer data by 2014
Transactions
Spend per customer
Foot traffic in stores
Time spent per visit
Log data
Customer reviews
Customer service
Audio files of customer
service calls, for example
Emails
Internal communications
Customer contacts
Email campaigns
Internal data sent to the big data vault where it
is traced and recorded is drawn from all parts of
the organization and forms a unified database.
Internal
data source
Apache Hadoop Open-source software
library for storing and processing big data
Terabyte One trillion bytes
Petabyte Unit of digital data equivalent
to 1,024 terabytes
Exabyte Unit of digital data equivalent
to 1,024 petabytes (five exabytes equates
to all words ever spoken by human beings)
NEED TO KNOW
DATA MANAGEMENT
Organizations can choose either offline or
online options to store big data and various
software for access and analysis.
Big storage hardware Servers; storage
and network equipment capable of
supporting many terabytes of data
Software Includes programs for research
and analysis, storage and access, and
graphic visualization of data
Cloud services Third-party providers
that offer storage networks for big data
management and access
INFORMATION OVERLOAD
The volume of data typically generated
online every second:
Emails 2,314,084 sent
Tweets 7,231 sent
Instagram 1,129 images uploaded
Tumblr 1,362 posts
Skype 1,473 calls
Internet 22,148 GB of traffic
Google 44,490 searches
YouTube 84,841 videos watched
Facebook 30,000 likes; 5 new profiles
@
US_262-263_Big_Data_Steve.indd 263 21/11/2014 16:41
262 263
HOW SALES AND MARKETING WORKS
Information management
38%
of marketers had a
centralized database for
customer data by 2014
Transactions
Spend per customer
Foot traffic in stores
Time spent per visit
Log data
Customer reviews
Customer service
Audio files of customer
service calls, for example
Emails
Internal communications
Customer contacts
Email campaigns
Internal data sent to the big data vault where it
is traced and recorded is drawn from all parts of
the organization and forms a unified database.
Internal
data source
Apache Hadoop Open-source software
library for storing and processing big data
Terabyte One trillion bytes
Petabyte Unit of digital data equivalent
to 1,024 terabytes
Exabyte Unit of digital data equivalent
to 1,024 petabytes (five exabytes equates
to all words ever spoken by human beings)
NEED TO KNOW
DATA MANAGEMENT
Organizations can choose either offline or
online options to store big data and various
software for access and analysis.
Big storage hardware Servers; storage
and network equipment capable of
supporting many terabytes of data
Software Includes programs for research
and analysis, storage and access, and
graphic visualization of data
Cloud services Third-party providers
that offer storage networks for big data
management and access
INFORMATION OVERLOAD
The volume of data typically generated
online every second:
Emails 2,314,084 sent
Tweets 7,231 sent
Instagram 1,129 images uploaded
Tumblr 1,362 posts
Skype 1,473 calls
Internet 22,148 GB of traffic
Google 44,490 searches
YouTube 84,841 videos watched
Facebook 30,000 likes; 5 new profiles
@
US_262-263_Big_Data_Steve.indd 263 21/11/2014 16:41
How it works
CRM is a software tool in the company’s IT system
that records all interactions the business has with
customers. The information can be used in a number
of ways: the sales team may use it to find new business
leads and improve relationships with existing customers,
the marketing team may use it to reward loyalty, and
customer service may use it to deal with problems.
Customer relationship
management (CRM)
CRM (customer relationship management) is a computerized system used
for managing and coordinating marketing, sales, and customer-support
data to maintain good customer relations and improve profitability.
AUTOMATION
Customer
Customer data
flows into the CRM
system through
their transactions.
Customer segmentation
The market can be segmented into groups
relevant to the product the company sells.
Email campaign management
Different emails are sent automatically to the relevant groups.
Age
Special interests
Gender Family size
Profession
Location
CRM system
The system uses reliable
processes that allow companies
to connect more efficiently
with customers and ultimately
offer better service,
resulting in long-term
gains for the company.
age
profession
gender
location
special
interests
family size
CRM can use automation as a tool to respond to customers who visit and use a website.
Technology-enabled
relationship management
(TERM) Use of automated
processes to manage customer
relationships
Enterprise resource planning
(ERP) Precursor to CRM
Cloud-based CRM
Computerized CRM system that
exists in the cloud (online)
NEED TO KNOW
@
@ @
@ @
@ @
US_264-265_Customer_Relationship_Management_Steve.indd 264 15/12/2014 13:54
264 265
Customer service
Respond to service issues
immediately; manage
customer cases; gather
feedback
Operations
Improve efficiency of
manufacturing, product
delivery, ordering,
and tracking
Finance
Generate invoices in a
timely manner; manage
payment process
Sales
Convert new leads; find
new prospects; cross-sell
and upsell opportunities;
customize pitches
Marketing
Target groups for special
campaigns; monitor and
reward loyalty; generate leads
How sales and marketing works
Information management
The company sends a price quote
in response to the customer’s
interest in their product.
Price quote
CRM uses the information to group
customers according to their
buying behavior.
Customer contact form
The company asks questions to
glean information about the
customer’s views.
Customer feedback
An automated ticket allows
the customer to track delivery
of the product.
Support ticket
The customer pays for the product
via the internet.
E-commerce transaction
871%
the average return
on investment
delivered by CRM
$
$
US_264-265_Customer_Relationship_Management_Steve.indd 265 21/11/2014 16:27
264 265
Customer service
Respond to service issues
immediately; manage
customer cases; gather
feedback
Operations
Improve efficiency of
manufacturing, product
delivery, ordering,
and tracking
Finance
Generate invoices in a
timely manner; manage
payment process
Sales
Convert new leads; find
new prospects; cross-sell
and upsell opportunities;
customize pitches
Marketing
Target groups for special
campaigns; monitor and
reward loyalty; generate leads
How sales and marketing works
Information management
The company sends a price quote
in response to the customer’s
interest in their product.
Price quote
CRM uses the information to group
customers according to their
buying behavior.
Customer contact form
The company asks questions to
glean information about the
customer’s views.
Customer feedback
An automated ticket allows
the customer to track delivery
of the product.
Support ticket
The customer pays for the product
via the internet.
E-commerce transaction
871%
the average return
on investment
delivered by CRM
$
$
US_264-265_Customer_Relationship_Management_Steve.indd 265 21/11/2014 16:27
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