Consumer insight : how to use data and market research to get closer to your customer

Contents......Page 6
The Market Research Society......Page 9
List of contributors......Page 12
Foreword......Page 14
Acknowledgements......Page 16
INTRODUCTION......Page 18
What ‘insight ’includes......Page 19
Process is included......Page 20
THE PROFESSIONAL DOMAIN OF CONSUMER INSIGHT......Page 21
CUSTOMERS AND CONSUMERS......Page 22
KEEPING CONSUMERS AND STAKEHOLDERS HAPPY –FROM RESEARCH,THROUGH MEASUREMENT, TO MANAGEMENT......Page 23
Head or halo?......Page 25
INSIGHT AND KNOWLEDGE MANAGEMENT......Page 28
CONSUMER INSIGHT AND MARKETING TRANSFORMATION......Page 29
ORGANIZATION OF THIS BOOK......Page 33
NOTES......Page 35
INTRODUCTION......Page 36
Technical definition......Page 37
CHANNELS FOR MANAGING CONSUMERS DIRECTLY......Page 38
HOW DATABASE MARKETING WORKS......Page 40
Acquisition marketing......Page 41
FUTURE VALUE OF CONSUMERS......Page 42
APPLICATIONS OF THE CONSUMER DATABASE......Page 43
HOW A DATABASE IS USED......Page 44
FACTORS THAT HAVE HELPED DATABASE MARKETING GROW SO FAST......Page 46
THE STRENGTHS OF DATABASE MARKETING......Page 47
Data design......Page 48
Sources of data......Page 49
Types of information on the database......Page 50
Holding the data......Page 54
DATA QUALITY AND MAINTENANCE......Page 55
MERGING AND PURGING DATA......Page 56
USING A DATABASE IN PRACTICE......Page 57
CONCLUSION......Page 62
Consumer applications......Page 63
Dialogue applications......Page 64
STRATEGIC ISSUES......Page 65
Data acquisition and development......Page 66
Profiling consumers......Page 67
Making applications work......Page 68
Financial services......Page 69
Leisure and travel services......Page 70
Marketers of physical products......Page 71
Mail-order houses......Page 73
THE DEMAND FOR DATABASE MARKETING......Page 74
CONCLUSION......Page 75
DATABASE MARKETING AND CUSTOMER CARE......Page 76
THE MEANING OF CUSTOMER CARE......Page 77
Focus on the consumer decision-making unit......Page 79
The scope of customer care......Page 80
Perceptions of care......Page 81
Customer service and customer care......Page 82
Focusing on customers......Page 83
Symbolic proposition......Page 84
HOW CHOICE OF MEDIA REQUIRES CONSUMER INSIGHT......Page 85
Direct mail......Page 87
Telemarketing......Page 90
Other ways to contact customers......Page 96
Mobile marketing......Page 98
How new media have changed marketing......Page 99
Broadcast media......Page 100
E-mail......Page 101
NOTES......Page 104
A VARIETY OF DEFINITIONS......Page 105
WHY CRM IS IMPORTANT OR AT LEAST USEFUL......Page 107
Customer management activity......Page 113
Information and technology......Page 114
PERFORMANCE IS DISAPPOINTING......Page 115
Poor implementation –too much postulating, too little doing......Page 116
A belief that IT is a panacea......Page 117
Designing the customer experience......Page 118
The benefits of managing the customer experience......Page 122
Marketing/CRM strategy......Page 124
IT architecture......Page 125
Broader systems and management issues......Page 126
NOTES......Page 127
INTRODUCTION......Page 128
SEGMENTATION......Page 129
Demographic segmentation......Page 130
Combining sources......Page 131
Response-based segmentation......Page 132
Purchasing variables......Page 133
USING MARKET RESEARCH IN CRM......Page 135
UNDERSTANDING CONSUMERS......Page 136
Depth interviews......Page 137
Mail questionnaires......Page 138
Telephone questionnaires......Page 139
Observation,for example mystery shopping......Page 140
THE RESEARCH PROCESS......Page 141
Consumer profitability......Page 142
Loyalty,commitment and retention......Page 143
The customer experience and timing of research......Page 145
The focus of research:consumers and staff......Page 146
Research culture:‘If you can ’t measure it, you can ’t manage it ’......Page 147
CONCLUSIONS......Page 148
Client researchers where CRM is practised......Page 150
NOTES......Page 151
PRODUCTS,PROPOSITIONS AND CUSTOMERS......Page 152
Segmentation......Page 155
CONCLUSIONS ON THE DEPLOYMENT OF ANALYSIS......Page 158
Treating the consumer as an investment......Page 159
Single view......Page 160
Developing or enhancing the technical infrastructure......Page 161
DATA MINING......Page 162
The questions companies want answered......Page 163
Some examples of data mining activity in marketing......Page 164
The methodology of data mining......Page 168
Basic techniques of data mining......Page 170
Data mining operations –for hypothesis or discovery-led work......Page 171
NOTES......Page 176
THE PROBLEM......Page 177
Consumer value –uncertainty and variations......Page 182
Systems to deploy the consumer data......Page 183
CUSTOMER RETENTION......Page 188
The meaning of customer retention......Page 190
THE CONCEPT OF LOYALTY......Page 192
THE RESEARCH PROGRAMME......Page 193
Method......Page 194
Definition of customer retention......Page 195
Measurement of customer retention......Page 196
How well organizations use customer retention information......Page 197
Other consumer information from the database......Page 198
The special case of cross -selling......Page 200
CONCLUSIONS......Page 201
NOTES......Page 202
Types of data......Page 203
Data p V legislation and industry conduct guidelines......Page 204
What influences the sharing of consumer insight......Page 205
Why bother?A reminder......Page 206
Why bother with loyalty schemes......Page 207
The benefits and costs of customer loyalty schemes......Page 208
The mixed history......Page 209
WHAT CUSTOMER LOYALTY SCHEMES INVOLVE MANAGERIALLY......Page 213
Applied analysis of consumer data 5......Page 214
The customer service centre (CSC)......Page 215
Integrating the loyalty scheme into the sponsoring company......Page 216
The Tesco Clubcard –an astute combination of outsourcing and insourcing......Page 219
Jigsaw –a loyalty case study in consumer goods......Page 220
The Nectar scheme –another example of outsourcing......Page 221
Consumer insight is the key......Page 222
CONCLUSIONS......Page 223
NOTES......Page 224
WHO GOOD CONSUMERS ARE......Page 226
WHO BAD CONSUMERS ARE......Page 228
PREDICTION OF GOOD AND BAD......Page 233
THE PORTFOLIO APPROACH......Page 234
Choosing consumers for positive and negative –treatment......Page 235
SOCIAL,POLITICAL AND LEGAL ISSUES......Page 236
ETHICAL ISSUES......Page 237
THE INTERNET,TRUST AND ALL THAT......Page 239
WHAT THE LAW SAYS......Page 240
IMPROVING THE QUALITY OF CONSUMER DATA MANAGEMENT SO AS TO COMPLY WITH REQUIREMENTS......Page 241
GUIDELINES FOR DATA PROTECTION......Page 242
CONCLUSIONS......Page 243
THE HISTORY......Page 245
A SENSE OF PERSPECTIVE......Page 249
HOW TECHNOLOGY OPENS UP NEW OPPORTUNITIES......Page 250
DATA WAREHOUSING,DECISION SCIENCE AND DATA ANALYSIS......Page 254
Batch......Page 257
Real time......Page 258
E-BUSINESS INFRASTRUCTURE......Page 259
WHAT HAS BEEN LEARNT FROM IMPLEMENTING NEW TECHNOLOGY......Page 261
WHAT THE FUTURE HOLDS......Page 264
Organizing and managing consumer insight......Page 265
The direct/database marketing manager......Page 266
The systems specialist......Page 267
Customer data/customer insight management......Page 268
The statistician,data analyst or modeller......Page 269
Senior marketing management......Page 270
MANAGING CONSUMER INSIGHT STAFF......Page 271
Required skills and capabilities......Page 272
Using external suppliers......Page 273
The decision whether to contract out consumer insight......Page 274
Managing the strategic relationship with suppliers......Page 275
CONCLUSIONS......Page 282
The Market Research Society......Page 284
Relationship with data protection legislation......Page 285
A.Conditions of Membership and Professional Responsibilities......Page 289
B.ICC/ESOMAR Code of Marketing and Social Research Practice......Page 293
How the ICC/ESOMAR International Code of Marketing and Social Research Practice should be Applied......Page 297
How to Use Codeline......Page 303
Index......Page 305