Managing Marketing is a podcast hosted by TrinityP3 Founder and Global CEO, Darren Woolley. Each podcast is a conversation with a thought-leader, professional or practitioner of marketing and communications on the issues, insights and opportunities in the marketing management category. Ideal for marketers, advertisers, media and commercial communications professionals.
Mark Reinke, Group Executive, Customer, Data and Marketing at Suncorp Group shares with Darren the challenges for marketers in service industries in shifting the business focus to the customer and the opportunities for marketers in leading the change to a customer centric strategy.
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Welcome back to Managing Marketing and today I’m talking with Mark Reinke, Group Executive, Customer, Data and Marketing at Suncorp and actually, a long-time friend. So welcome Mark.
Thanks Darren, good to see you.
What has changed?
Now it says here, Customer Data and Marketing, I guess where I’d like to start this conversation is how for you, has the balance changed between customer data and marketing in say, the last 3 years?
That’s a good question Darren. I think all marketers would say they’ve been customer-centric. I would certainly argue that my marketing career has always been centred around the customer.
But I think what’s changed and changed substantially is we have unquestionably transformed and transitioned quickly from that being an engagement with customers in the communication context to an engagement at an experience level.
Well that’s a big difference, isn’t it? Because with traditional marketing of the 4 Ps, promotion was the main way we interacted with customers, wasn’t it?
Well I think in some ways I could argue that the principles are still the same. So if you went back to the basics of the 4 Ps, really what you’re doing here is joining those back up and perhaps over time, they’ve become a little bit disjointed.
A lot of marketers, actually most marketers, particularly in my business which is a services business a tangible product, in reality you’re orchestrating an experience and that experience is combined of part price, part product, part the distribution experience and part the way it’s presented.
I think what’s different now is people, consumers and customers, their expectations are set outside your category.
Empowered customers with higher expectations
So financial services many would say has a level of expectation that’s lower than some retail categories or e-tailor categories. But I find that’s now changed. I just simply do not except as a customer, that I can get great service and beautifully tailored personalised experiences from my local coffee shop, and not get them from my banker or insurance business.
And not only that, they’ve been empowered now through social media. Customers could always walk away, couldn’t they? If they didn’t like the service you’re giving them, they could walk away.
But now they’re empowered because they’ve almost become publishers in their own rights through social media. They’re not just telling their neighbours in complaining about poor service, they will tell everyone that listens and everyone on the internet. So that makes it a much more powerful voice from them.
I think that’s absolutely right Darren. I think in reality, this is a globalised phenomenon. This transcends boundaries of brands. It transcends states, nations in a way. So behaviour is fairly ubiquitous now.
I mean, in our business, we have this sort of saying that customers expect more and have more power. And if we don’t start re-orientating to that world, then in reality we will cease to be global
It’s interesting, you pointed out that expectations are set outside of your category, because there was a time when we would say, “Oh well, all banks are the same”, or “All Telcos are the same”, or whatever are the same and we’d just put up with it. Airlines are the same.
But I think you’re right. Overall, people are no longer seeing boundaries in their expectations.
New kinds of business models
No, no not at all. And I think most businesses, certainly mine now see that tomorrow’s competitors arguably even today’s, are not coming from within your category.
So because consumers have now voted with their own behaviour, you will see categories change based on competitors that bring business models that are really effective in technology and retail and they’ll bring those to financial services and we see that today.
So they design and orchestrate those experiences as if you were a technology enabled retailer, not a bank and what’s interesting is, you don’t have to have the big infrastructure of a bank, hold the capital, take the risk, you can plug into a bank to do that.
So increasingly what I would say from my business is, we do not want to become the utility into which someone else plugs and delivers those experiences, we want to be the orchestrator of those experiences. And that’s where the customer I think takes on a new meaning beyond just the person that buys the product at the end of the day.
Yeah, because being reduced to being simply a service provider and no longer having that customer interface completely takes you out of the market and makes you a commodity, doesn’t it? Continue reading “Managing Marketing – The marketing challenges and opportunities of customer and data”