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Customer Intelligence

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by

Beau Liu

on 28 February 2013

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Transcript of Customer Intelligence

Alexandre BAL
CHEN Xiaonai
Harika OZHALEPLI
LIU Zheng
Shamshad WaKeel ESPN Drives Fan value Through Customer Intelligence ESPN Snapshot - Entertainment and Sports Programming Network
- “The worldwide leader in sports”
- One of the most successful sports network nowadays
- The media company’s ability to reach fans is the foundation of the company’s business, and attracts leading online advertisers to its Web site.
- Featuring a broad portfolio of multimedia assets (more than 50 business entities), has built a large following of fans through its Web site and broadcasts and is recognized as a major force in entertainment. ESPN Introduction TV Networks & Channels ESPN Fantasy Game Off-line Shop Theme Park Radio & App Magazines and Books ESPN Multiple Business Units Separated and inefficient data use and storage (offline/online/business unit)

Absence of real customer knowledge
- Lack of consistent, global and cohesive view of its customers: interaction with the overall business

- Selling online ads as other websites (ROS)

No specific strategy and use of the information to improve ad revenues and fan/customer marketing Why using customer intelligence? Main Issues
- Need to understand the interactions, preferences and behaviors of customers


- Need to identify potential of each customer in order to:
Evaluate the market opportunities
Select the customers most likely to engage in specific ways
Sort the customers into categories to be more efficient on the markets Why using customer intelligence?
Customer intelligence would:
- Improve customer experience and drive marketing and business success
- Improve communication across all channels
- Respond to the opportunity to cross-sell more paid services Why using customer intelligence? AT FIRST GLANCE FANS LOOK VERY SIMILAR ESPN TURNS DATA INTO INTELLIGENCE Created a Fan Value Model

- The company integrates fan data from product purchases and enrolments,
registration, online behaviour

- Included variables such as time spent on ESPN.com and premium product revenue.

- Ranks ESPN fans from high to low based on value they deliver to ESPN.com

- Uncovered a classic 80/20

- Marketing today focuses on maximizing fan value – e.g by migrating fans to higher value deciles. ESPN TURNS DATA INTO INTELLIGENCE - Today, fan value drives a wide range of activity including content
strategies, channel strategies, network cross promotions, and even the prioritization of house ads. - ESPN successfully integrated its various data sources, it began to evaluate the relative value of fans Understand the relative value of fans Understand how fans interact with the company - ESPN quickly moved beyond looking at the demographic profile of customers within specific products.
- Allowed ESPN to understand cross channel behavior.


 FRM‘S MISSION:

– To know fans well enough, at any point in time or place, to serve them better.

– To drive direct and indirect revenue. Scott Keating, senior director of fan relationship marketing (FRM) in ESPN and his team ESPN TURNS CUSTOMER DATA INTO INTELLIGENCE

FAN RELATIONSHIP MARKETING ESPN Uses Customer Intelligence to Drive Business Value - ESPN leverages fan intelligence.
- ESPN uses fan knowledge.
- It leverages customer knowledge to improve the relevance of its message.
- It used insight to tailor any cross-sell and up-sell efforts. ESPN Uses Customer Intelligence to Drive Business Value - It uses deep customer
knowledge to segment and target fans at a micro level
- Test product
- Development - Enhance the customer experience ESPN Uses Customer Intelligence to Drive Business Value - ESPN introduced ESPN Select, a premium advertising product that allows advertisers to target visitors based on attributes
- team can also provide advertisers with mid-campaign report
- Cost center to Revenue Driver - Develop marketing into a profit generator. ESPN Online Shop Winning Results Better select, target and manage their marketing campaigns
The ability to test campaigns for ongoing optimization. Ads revenue increase of 10% in the 1st year.
Consultative advertising => eliminate 3rd-party => Further Differentiation Former ROS=2*CPM Former remnants=5*CPM
Increased Insights into Fans Winning Results Treat customer data as a core asset.

Differentiate customers based on value.

Leverage CI across the enterprise, not just the marketing department. What CI Professionals can learn from ESPN Consistency of Vision

Preparation

Flexibility How to Apply ESPN’s Best Practices Why Customer Intelligence? Customer Data to Customer Intelligence Customer Intelligence to Business Value Outcome & Conclusion
Full transcript