Wharton – Customer Loyalty in the Age of Big Data

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Wharton – ‘Customer Loyalty in the Age of Big Data’

The Wharton School’s article on ‘Customer Loyalty in the Age of Big Data’ is filled with nuggets for marketers looking to improve their ability to segment customers and improve their predictive analytics.

This excellent article references many big brands who are sharing their hard-earned learnings:

  • Hilton Hotels, Mark Weinstein, Global Head of Loyalty and Partnerships, who notes – “Although a lot talk about the promise of analytics centers on “big data,” the challenge isn’t so much obtaining data, it’s having the right data. The second challenge is: What are you going to do with [the data]?”.  Weinstein has refined Hilton’s analytics to consider (a) Hilton’s ability to act on the data once it determines the insight, (b) ability to use data to personalize the customer experience  (c) behavior triggers (what customer behaviors precede their next decisions, and establishing the time necessary to act), (d) lagging indicators (what customer actions precede their next action) and (e) reviewing the customer’s lifetime value relative to the company’s focus (whether short-term or long-term).
  • QVC, Peter Goodnough, VP of Consumer Insights & Analytics who highlights:  “Customer analytics are gathered — and acted upon — in real time. During the broadcast, a line producer is constantly looking at data concerning phone calls or sales coming in and is suggesting changes to impact behavior.”  There is much to learn from QVC who has refined its practices over 28 years.  Interestingly, their average customer spend exceeds Amazon.
  • Caesars Entertainment, Joshua Kanter, SVP for Revenue Acceleration and Total Rewards who spotlights:  “85% of revenue can be tied to “individual consumers on individual days playing specific games.”  The company moves beyond traditional customer segmentation management (which it is great at), to tying revenue to individual customers across multiple properties.  Interestingly, 90% of what they give to customers “is totally discretionary, which allows us to tailor the offers, communications and experiences to customers and what they like.” It also empowers employees to play an active role.”

To read this excellent article on Wharton’s web site, click here.

By Nick Mavrick

You can find Nick Mavrick on Google+

Intelligent Response specializes in operationalizing Predictive Analytics, Market Research, Quantitiative Marketing and Digital Advocacy in Washington DC.

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