Single Cust()rner View
CHAPTER 4: DATA ANALYSIS AND PRESENTATION OF RESULTS
4.4 Core Questions Analysis
4.4.4 The use of market research in enabling client centric marketing
Awareness of client knowledge and research services is imperative in crafting client centric marketing strategies. The next table addresses specific issues regarding the awareness and usage of client research data.
Literature review highlights that it is vital that organizations make the client their central preoccupation and attempt to get close to them, know them, understand them, be clear of their needs and share their concerns. The process of identifying clients must be well disciplined and adhered to (Zairi, 1999). Clients need to be vehemently studied with their needs accurately identified and translated and from this client segments or clusters developed; the granularity is improved with every new piece of information.
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% ) Important decisions aboutclients are mostly based on "gut 46 feel" and previous experience.
) Special attention is gi ven nderstanding client trends when 67 esigning projects/services.
) Tracking clients' previolls 67 or future projects/services.
Staff is aware of - owl edge database system fOl
33 ollecting, managing and sharing lient knowledge.
) Known facts about cl ients ar lsed to identify new pattell1.· 71
bout client beha vior.
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4 54
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25 38
87
81
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87
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100
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are ecause staff does not
ccess to important information 46 8 46 44 6 50 13 13 75 33 17 50
vailable.
i) Client research data is readily
54 42 50 50 50 50 25 8 67
") Client research data is use egularly
k) Staff generally knows wher o obtain client research data.
54
38
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62 44
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50 87
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Table 4.4 The use of mal'ket I'eseanh in enabling client centdc mal'keting
98% of the Investment Cluster respondents indicated that special attention IS given to understanding client trends when designing projects/services and 75% indicated that known facts about clients' previous behaviour is used to provide data for future projects/services.
However, it must be noted that only 17% of the Investment Cl uster respondents agreed that staff generally knows where to obtain client research data and only 25% agreed that client research data is readily available. It is encouraging to note that Direct Marketing shows a consistent high level of understanding and usage of client research information.
Secondary data discussed in chapter two shows that the results of a study called 'The Fact Gap: The Disconnect between Data and Decisions" where 675 executives, assessed the state of information access and decision making within organizations throughout the United States and Europe. It indicated that two-thirds of executives identified that more than half of their important business decisions are based on 'gut feel' and experience, rather than on sound and verifiable information. This Sanlam Client Insight Survey primary data reveals a similar trend in that that 46% of Group Marketing respondents believe that important decisions about clients are based on "gut feel" and previous experience. It can be concerning to management that 63% of Group Marketing respondents disagree that staff generally knows where to obtain client research data which implies that client centric driven marketing strategies are not possible without access to accurate client data.
4.4.5 Age as a Barrier to Communication
Respondents were asked the extent to which they agree or disagree with various statements regarding the reasons why some staff members in their business units do not make suggestions to improve products/services in order to enhance client centricity. Literature review highlights that communication plays a key role in understanding business practice and projects. Itis fundamental to any successful organisation. The following figure explores whether age can act as a barrier to communication.
Age as a barrier to communication
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Age in years
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GM aNOl1eGM IFigure 4.7: Younger people have difficulty advising/correcting older people.
When asked if age was a barrier to communication, a distinct pattern was observed between Group Marketing and Non Group Marketing respondents in the 35-44 age bracket and 45- 54 age bracket. 63% Group Marketing respondents between ages 35-44 age bracket agreed to age being a barrier as opposed to 31% of Non Group Marketing respondents. In the 45- 54 age bracket however, a greater number of Non Group Marketing respondents agreed in comparison to Group Marketing respondents. Group Marketing has greater number younger specialists and in order for them to drive client centric change; they need to influence the older, more senior managers in Non Group Marketing.
It is interesting to note that Group Marketing has a minimum of 60% of younger personnel between 25-44 age bracket agreeing that they have difficulty advising/correcting older and more experienced people.
4.4.6 Cross Selling and Up Selling as Part of Client Insight
The definition of Cross Selling is the strategy of pushing new products to current customers based on their past purchases. It is designed to widen the clients' reliance on the company and decrease the likelihood of the client switching to a competitor. Up Selling is the technique of selling additional products to clients who only planned to buy one, or upgrading the original order (http://www.investorwords.com). Cross and Up Selling can only be done when there is a good understanding of one's clients propensity to purchase
other products through proper analysis of client data. Respondents were asked the extent to which they agree or disagree with each of the following statements regarding cross selling and up selling in their Business Units.
It is worth highlighting that it is expected that the Group Marketing respondents who participated in this study should be in a position of using Sanlam primary client database as part of the marketing tool regularly.
According to the PricewaterhouseCoopers Global Data Management Survey of 2001, companies that manage their data as a strategic resource and invest in its quality are already pulling ahead in terms of reputation and profitability (http://www.pwc.com).
It is clear from the table above that only 42 % of respondents from Group Marketing, proactively find cross and up selling opportunities and that not more than 33% use Sanlam primary client data base. It is concerning that a significant percentage of both Group and Non Group Marketing indicated that they do not have access to the Sanlam client database, hence they are not using it.
From the analysis shown above and worth noticing, two thirds (67%) of respondents from Investment Cluster indicated that they do not have access and do not use Sanlam primary client database. This could be ascribed to the fact that this group had just became part of Sanlam Group Marketing recently, database access to this group may be crucial as part of the marketing strategies.