The majority of C-level decision makers in SA believe their approach to customer management is ineffective and that they need better customer insights and enhanced analytics, according to a Forrester study commissioned by global information services company Experian.
Traditional customer-centric strategies are being disrupted by data and the speed at which it’s becoming available, says Experian SA MD, Simon Russell, adding that traditional business models will either disappear or evolve into something else. He was speaking at the launch of Mosaic, a consumer segmentation system that classifies the SA population into 36 unique types and nine overarching groups based on their demographics, lifestyle and purchasing propensities.
“In an increasingly digitalised world, customer experience has replaced customer loyalty,” he says. “Organisations that survive will be those that understand their customers and offer engaging experiences.” Marketers therefore need to be more agile and personable with consumers by transforming insights into relevant customer engagements.
Relevance is key: a one-size-fits-all approach to customer engagement is no longer sufficient and grouping customers together while disregarding their uniqueness is a crucial mistake, says Russell. “What appeals to one individual may not appeal to another,” he points out. “Organisations need to define their market and their customers clearly from the start.”
Mediocre experiences, he goes on to say, are not enough, as customers expect real and authentic interactions, which requires companies to make a complete shift as they give a far greater consideration to the customer’s individual preferences and desires than they have ever done in the past. Achieving this requires creating a single customer view of the customer from variable data in order to examine their unique needs and attitudes. Data then needs to be converted into actionable insights so that brands can engage with customers on a personalised level. This, says Russell, will help brands to boost their appeal by providing the desired experience through a tailored customer strategy.
Experian head of marketing solutions, Riona Naidu, describes Mosaic as a next-generation consumer classification system that provides detailed information about what drives each group’s attitudes and priorities and allows marketers to gain a comprehensive picture of their target consumers’ preferences, habits and attitudes and a better understanding of the size of their potential market.
Mosiac is intended to help clients define and profile high-value customers, create strategies that will grow their consumer base and increase customer engagement. According to Naidu, Mosaic allows clients to drive a consistent brand experience across a multichannel environment. “Essentially, Mosaic is a strategic segmentation tool that identifies the most effective traditional and digital channels for reaching a specific customer segment and then maximises the return on investment on cross-channel campaigns,” she says.
The big take-out: Information services company Experian has launched Mosaic, a next-generation consumer classification system that offers a common customer language to define and engage consumers with improved relevance.
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