+Marketing Transformation Challenge

Here is your assignment template and takeaway resource that you can use for answers to Marketing
Transformation Challenge questions through this course.

Be sure to fill in answers for the daily content most relevant to your business problem and upload the final
version of your response sheet to the learning platform by the final deadlines.

Week Focus Area Status

1 Day 1: Business Context*
2 Day 2: Customer Insights
3 Day 3: Customer Segmentation
4 Day 4: Customer Journey Mapping
5 Day 5: Brand Storytelling in a Digital
World
7 Day 6: Marketing Implementation
8 Day 7: Next Steps

*Required

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Day 1: Business Context
 What is your industry of focus?
 If you are employed, what is your role in your organization?
 Who will be the customer or target audience of focus in your assignment?
 How has the explosion of data and advances in digital technologies affected your industry?
 What is the problem you will be addressing (e.g., reducing customer attrition, increasing
customer lifetime value, launching a new product, creating a marketing campaign, etc.)?
 Why is this problem significant?

1. Industry of focus: Finance, Credit Cards

2. Role: Marketing coordinator

3. Customer/target audience: Employed people, aged 24-64

4. The level of security has drastically increased, more info available before making a decision for getting a
card, payments are easier (touch transactions), online shopping has increased sales, more chances for
promotion, easy online procedures for applying,

5. Problem: reducing customer attrition and increasing card members/gaining new customers.

6. Even though Diners Club has round 15.000 card holders, most of them loyal and well-adjusted to the card
usage, lately the customer attrition is on the rise due to the many small financial institutions who work with
fast credits, and the many novelties the banks started bringing in the market.

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Day 2: Customer Insights
 Using the methods in Class 2, what customer insight methods will you use to collect
customer insights?
 What are three to four key customer insights you collected? How did you get to these
insights?

1. Google analytics, Facebook audience insight and analytics, google trends, company’s data base.

2. Company data shows that the card is mostly (80%) used for installment payment; Facebook analytics show
that females are more engaged in the online campaigns (liking, commenting, sharing); Google analytics and
trends help us choose the best web sites for collaboration and marketing campaigns;

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Day 3: Customer Segmentation
 What approach would you take to doing response-based segmentation of customers for
your initiative?
 How might you use automated behavioral marketing to segment to a market of one?

1. Practically speaking, I think that behavioral segmentation for us (financial institutions) should focus on
tactical analysis of credit data, online banking, or credit card transactions. We should create specific
marketing communications based on recent transaction data. Once the optimal segmentation strategy has
been agreed to, and the expectations of performance have been defined, we should turn attention to the
next most critical piece in the communication equation: the message.
The nature of behavioral segmentation provides the opportunity for real-time communication across a wide
range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well
as personal contact at the branch or call center level. In order for the use of behavioral data (and its
considerable expense) to make financial sense, we must act immediately on the triggers that are produced
with this type of analysis. This means near real-time marketing reaction to behavior events that will drive
product purchase aka new applications or increased card usage.

2. Behavioral segmentation will allow us to divide the total market into smaller homogeneous groups based
on the buying patterns of customers like usage frequency, brand loyalty, benefits needed etc. With that we
can target our customers through offering a message that caters some of their needs and wants, stimulating
them to apply for our cards or use concrete promotion. We can create customized email newsletters, for our
loyal customers, based on their spending habits. For example, creating an algorithm that tracks the
customers’ transactions, from our data base, and if a customer has 5 and above transactions in, let’s say,
sports stores and travel agencies, automatically the next newsletter that he receives contains promotions
about his topics of interest.

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Day 4: Customer Journey Mapping
 What are the stages in the customer journey that your target persona goes through?
 What are the desired outcomes at each stage of the customer journey? What pain points
do customers experience along the journey?

Stages of Customer journey (a. outcomes; b. pain points):

1. Awareness, Evaluation and Consideration;

a. customer to see that there are few cared available but choose ours;
b. too many information, confusion
2. Apply;
a. To fill an online application;
b. Internet connection problem, system crash, too much required information
3. Acceptance;
a. To meet the required criteria;
b. Rejection
4. Activation;
a. Smooth process of delivery and activation;
b. Late delivery of the signed contract, which will postpone the activation of the card
5. Usage
a. At least 10 monthly purchases/transactions
b. Late payment fees, card can be used only in certain stores (4000 stores)

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Day 5: Brand Storytelling in a Digital World
 What content will you use to engage with your customers? (Choose at least two pieces of
content.)
 Using the storytelling best practices from Week 5, how will you use storytelling to solve the
customers’ problem? If Transmedia storytelling is a worthwhile solution, please describe
your approach.

1. Email and sms marketing and social media content.

2. I would use practice 3 (Make it personal). From the customer insights I would identify groups of
problems divided by certain segmentation and create a story for each group. Every story would be
addressing the concrete problem and focus on the solution.
I really don’t think that Transmedia is the best solution for Diners Club, but if we have to use it, than
each of our products would use a different channel for promotions. For example, the main Diners Club
story will be told on our web site, than the classic card will go on social media (having in mind that
that’s the card for everybody, than the Sistina (health) card and Croatia (insurance) card will be
promoting by blogging, advising about best health practices and novelties in the hospital, sport and
general health blogs, insurance and savings blogs etc.; than the Advantage card will be communicated
only on our Linkedin page, since it has higher criteria for applying, and not everybody can have it. Each
card will be also promoting on specialized web portals, depending on the currently active campaign.

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Day 6: Marketing Implementation

Assuming you have thought through the customer journey and the engagement strategy you will
use, think about how you will execute the initiative and measure success.

 Which channels do you plan to use to engage with customers? Explain how this relates to
your overarching strategy.
 Define three metrics for success of your initiative.
 How will you use the results you find to be more agile, and make changes to your initiative
as you discover these results?

1. Email marketing, sms (so far proven to work best for our customers), social media, Diners Club mobile app,
maybe at some later stage chatbots, than blogging etc.
Company’s data shows that our customers are very devoted to our monthly newsletter and the percentage
of its opening is above 80%, placing it on the second place in best options for informing our clients, channel
that would definitely be incorporated in the new marketing strategy. The first place, channel that’s proven
as best, in a way drastically increasing the sales, is the sms, so again sms will be used for sales promotions.
Social media offers many options and with smart usage of the provided insights I believe we can direct the
customers towards making purchases on one side, increase the traffic (engagements, likes, comments, story
sharing, etc.) on the other side and of course when all that is well played, new members.
Diners Club mobile app is also a great channel for reaching to our customers. It provides information about
the sales network, current discounts, closest ATMs, available credit limit, invoices, and card balance. With
the push notifications we can, in real time, inform our customers. With minor adjustments and an update
we can give our customers a multipurpose app that they’ll enjoy using and also a great place for getting first-
hand information about new promotions.

2. Number of canceled cards, incremental sales, and customer lifetime value.

3. Firstly we will have to create a culture of agility, having in mind that so far we’ve used conventional
marketing tactics. Than using the steps for implementing (deciding on the planning cadence, organizing a
team and rump-up readiness), try to adjust the company (employees) to the new agile way of functioning,
meaning more nimble and responsive approach, where decisions are guided by data and continual testing.
The data-driven insights should become the backbone to establish priorities, grow segments and achieve
marketing KPIs. Data should be used to assure that our marketing efforts meet our customer needs at each
touchpoint along the buying journey.

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Digital Marketing Strategies Page 8 of 8
Day 7: Next Steps
 What are two key takeaways from this course that you might apply to your industry or
organization? What would you like to know more about?
 What next steps will you take in order to implement your marketing transformation plan?

1. Definitely the brand storytelling and creating a digital marketing strategy is what I would like to apply in my
organization, and alongside those two topics I would like to learn more about better usage of the customer
insights.

2. I would like to make a full marketing digital transformation, and with better usage of all the available
insights, create a powerful brand story. My ideas and suggestions will be discussed with the company’s
marketing agency and in few brainstorming sessions about each of the required steps, I hope I will have a
decent digital marketing transformation which I can present to the managing team.

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