Posted by Phillip Olivieri on October 08, 1999 at 09:03:52:

In Reply to: Re: CUSTOMER KNOWLEDGE MANAGEMENT posted by Reilly Atkinson on October 07, 1999 at 19:32:46:

Reilly:

I agree with your premise that analysis requires trained and experienced staff. And yes, although analysis is conducted on data in a flat file format, it is generally extracted from a relational data warehouse.

Here's an example of how we incorporated primary market research data with data from our relational data warehouse using the skills of experienced analysts.

Our company needed to development an acquisition strategy for one of our core products. We currently have over 2 million customers at a market penetration rate of 81% with our core product. We identified an additional 500,000 prospects within our geographic markets, but wanted to identify segments with the highest propensity to buy.

These 500,000 prospects consisted of two groups - 1) never had our product and 2) previously had our product (disconnected). We decided to target the disconnected group due to data limitations with the other group.

We conducted primary market research via a telemarketing survey to a representative sample from the disconnected prospect universe. The purpose of the research was to guage their level of intention to re-purchase our core product. The research concluded that there were three groups of respondents - 1) intention to buy, 2) undecided, and 3) no intention to buy. We had the research firm flag the records we originally provided of those responding with an indicator indentifying them by their intention category.

We obtained the respondent data back from the research firm and then proceeded to overlay third party segmentation cluster data to enhance this data with demographic and pysochographic information. We then conducted discriminant analysis on these three groups to ensure that the respondents in each of the three categories were mutually exclusive and isoloated the unqiue clusters.

After identifying the unique clusters within each of the three segments, we mapped them to the remaining propsects in our data warehouse and extracted all those prospects that fell into the 1) intention to buy and 2) undecided buckets.

In the coming weeks, we will be executing our acquisition campaign to these two segments using telemarketing as the medium of communication. We have also isolated a mutually exclusive random control group from which to benchmark response to determine whether our segmentation strategy is providing incremental lift.

I hope this real business case helps to answer your question.

Apart from the practical application of market research data with customer data residing in a data warehouse, I am still interested in knowing of any companies that have a separate customer knowledge unit (responsible for market research and database marketing) within their marketing department and how this unit is structured, etc.

Phil

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Follow Ups:

• Re: CUSTOMER KNOWLEDGE MANAGEMENT Reilly Atkinson 13:31:18 10/08/99 (0)
• CUSTOMER KNOWLEDGE MANAGEMENT Martyn R Jones 12:36:28 10/08/99 (2)
  • Re: CUSTOMER KNOWLEDGE MANAGEMENT Phillip Olivieri 16:46:38 10/08/99 (1)
    • Re: CUSTOMER KNOWLEDGE MANAGEMENT Martyn R Jones 06:47:40 10/09/99 (0)

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