Posted by Ajay Kelkar on Mon, May 18, 2009
For years Banks have relied on "push marketing". Manufacture a product (say a credit card) and then go pushing it into the market using the most "intrusive" methods possible. DSAs(direct sales associates) in the Indian market perfected this art and they would push a credit card to you outside an airport in a mall and in fact anywhere.This push marketing got the banks huge increase in acquistion rates and thereby the "Cards in force" jumped up but not the quality of the customer! And that has led to todays situation where most bank credit card portfolios are under threat with large deliquencies.
How do Banks and other Financial services marketers move from a paradigm of push marketing which is essentially choosing the "Banks time to market" to a new paradigm where the bank chooses "Customer's time to market" by observing changes in behaviour which occur in the customers life.A sudden substantial balance in a customers savings account should trigger a bank's campaign to sell insurance or a mutual fund.
Customers always have a reason behind their actions and the banks have all the data in which customers are actually leaving their "footprints behind". If companies deduce these reasons, event based marketing can positively exploit all customer database to draw a winning marketing strategy. Dan Smith talks about how Event-based marketing (EBM) has emerged as a new paradigm to turn traditional segment-centric direct marketing on its head.
http://www.customerthink.com/article/event_based_marketing_banks_changes_behavior
Posted by Ajay Kelkar on Mon, May 18, 2009
When will Politics start using data analytics at an individual customer level. Apparently the Obama campaign did just that and made the political campaigning process that much more efficient. When will smart data usage for politics become a reality for the world's largest democracy,India.
Compared to Business marketers, perhaps political campaign strategists can find even more useful data, or more sophisticated analytics can make outreach even more effective. Imagine if they tapped into shopping behavior, economic status, and social network/Internet pattern use databases. Micro-targeting could allow a campaign to put resources where they would have the most impact. It could also provide individuals with an understanding of a candidate's position on issues of most interest. Some people might fear this level of knowledge is personally intrusive, but according to Steve Polilli: "I have to believe it would make candidates more responsive to the needs of the electorate. I also hope that it would alert the campaigns that some people such as me are completely turned off by negative messages".
The Obama campaign won more than only because of his motivational speeches. See how data was a key lever to this political campaign shown by Steve Polilli.
http://blogs.sas.com/sascom/index.php?/archives/391-Data,-analysis-key-to-Obama-campaign.html
Imagine a world where political organizations have the ability to use a precise mathematical fact-based science to create a one-to-one communication with voters based on in-depth personalized information culled from all available data. Check out more on this at:http://callcenterinfo.tmcnet.com/analysis/articles/21964-political-campaigns-discovering-predictive-analytics.htm
Posted by Ajay Kelkar on Sun, Sep 07, 2008
Marketers understand "campaigns" to mean a one time & one way communication with customers.Here is an extremely interesting article on how Cisco is changing this traditional view of a "campaign" and moving from a "monologue" to a "dialogue" with it's customers.At Cequity we truly believe that many companies actually have the transactional data of their customers which allows them to set up "active dialogues" with their individual customers.We call this kind of marketing "Event based marketing" and it allows the marketer to create a two way dialogue basis the "customer behaviour change events" that the marketer can spot!
http://www.targetmarketingmag.com/article/85000-85999/85092_1.html