[00:17:48] Jiten: But specifically CRM and loyalty programs, how is it kind of, feeding into both? Right.
[00:17:53] Dilpreet: So again, like as you said, the digital transformation is, kind of a talk of the town, today. So I would say like in today's digital era where we are living in more like a kind of an experience economy environment, where consumers are dealing and engaging with multiple brands across varied industries at the same time, and, the customer behavior has changed so much and the expectations have changed so much that customer actually expects the same kind of experience irrespective of the industry, they are dealing with. So today, I would say like, let's suppose I'm, Apple iPhone or iPad user or a Netflix user would expect the same level of experience when they are buying, pizza or when they're buying burger, or even if they're staying at the hotel.
[00:18:34] Jiten: Mm-hmm.
[00:18:35] Dilpreet: Cause, I would say, well, unlike what would used to happen from five to seven years back, It was a lot of dependency was on the brand. So today most of the customers want to do it themselves. So wherein like they want the control to be in their hand. So like I'm talking about today, again as a industry specific numbers, I'm talking about, the contribution of the reservation, which are coming from the brand website.
[00:19:04] So that is somehow, somewhere in the range of 10-15%, which is there. Which is again, like, taking into consideration of volume. The customers are browsing your websites. The kinda experience they are looking forward to is good into any digital app, which they will be browsing for. Now, coming specifically to the loyalty and CRM. Loyalty and CRM are the two, key aspects of their digital transformation, which actually enhance the customer experience, thereby increasing the retention also.
[00:19:32] Now when I'm talking about hospitality industry or maybe some other traditional brands or the industry which would be there. So unfortunately, I would say a lot of traditional brands have this issue. And it is common across all these industries would be the fragmented databases which would be there.[00:19:49] That would be one. The second would be the non unified brand experience. And if the data part is not there. So again, whenever the customer is interacting with them. So every time that person is getting a different experience. So that's a Nonunified brand experience, which would be there. Organizations are not having a single view of the customer because of which they are doing a kind of a mass communication which is non-personalized.
[00:20:11] There is no such tracking on the marketing campaign effectiveness, which is there. So here also will, like again at this point of time, I might be able to reveal all the details since it's I would say a bit, confidential at the moment. But yeah, in a very generic, environment, if I just have to speak about that. Cause like, I've been working on this for the last decade or so. I would say, again, to summarize, I believe like the brand needs to have a kind of a four C framework, through the CRM loyalty. It's a very simplified version of what exactly is the expectation you have and how CRM loyalty would be able to help you.
[00:20:44] Four C Framework is capture, cluster, communicate, and control. So when I'm talking about the captures, like again, which all data sources are there, which you, want to have for the data from. The standardization needs to be done basis, which you will be getting a unified view of the customer. Once you have captured the data, the second point is the cluster wherein again, you'll be working on the segmentation basis, the RFM, which is recency frequency, or the monetary value, or like, again, there has been a lot of dynamism in terms of, how the segmentation has also changed. Like today, I would say most of the brands are operating on a kinda a segment of fund where they have moved away from macro segmentation or the clustering. So places, multiple, I would say variables or variables. They're kinda having a micro level segmentation. So each customer is different irrespective of whatever action they are taking. So that is the clustering, which is there. The third part is the communication.
[00:21:40] So like, again, communication can be enabled through, mapping the end-to-end customer journey. By having the CLM, which is the customer lifecycle management, the drip campaigns, which can be used where the human intervention is almost zero, the technology would be able to enable it.
[00:21:55] Jiten: Mm-hmm.
[00:21:56] Dilpreet: And the last part is the control. So again, under the control, it would be the analytics, the reporting, the dashboarding, the KPI. It give you a clear perspective in terms of focus. Right. You have captured the data, you have clustered that thing, you are communicating and then you are controlling whether it is working, not working. Cause again, unlike the traditional setup and talking about the CRM loyalty, which is actually kind working the through the digital transformation.
[00:22:17] So the campaigns are not working, I don't have to wait for days, right? Within minutes or within hours, I will be able to change that. So today, I believe for all the, transactional, all the traditional industries and the brands, the objective has to be that they need to get kinda a single view of the customer to identify the opportunities for relevant personalized communication, which would enable higher level of repeat, higher level of retention.
[00:22:47] Therby creating the brand loyalist.
[00:22:49] Jiten: Interesting. Super. I've learned, I think. Glad that you mentioned the post network and I kind of, again, capture it. So a lot of, I think, very interesting insights coming out of this podcast and I'm, I'm so glad Dilpreet, I got you on.
[00:23:01] Dilpreet: Pleasure. Pleasure.
[00:23:02] Jiten: And one of the questions I wanted to ask, and I think you answered part of it, is, how is CRM and loyalty helping experience, right? I think you kind of touched upon it,
[00:23:10] Dilpreet: mm-hmm.
[00:23:12] Jiten: But is there anything is, is our brands doing enough. And when I say brands, I say generically. It is not
[00:23:17] Dilpreet: mm-hmm.
[00:23:18] Jiten: specific to any industry or, but generically are brands doing enough?
[00:23:22] Dilpreet: Okay. So again, like again, I I will, should I be saying this or not? But like, again, there's a kind
[00:23:28] Jiten: Go ahead.
[00:23:28] Dilpreet: Misconception. Yeah, sure. That there is a kind, a misconception that, CRM and loyalty are different. So actually it is not so like to me, I would say both go hand in hand. Actually loyalty programs, per se. So these are one of the, I would say, important drivers and enabler for effective CRM platforms. So today when I'm talking about the CRMs, like again, it is a, I would say a combination of, three Ps, which is people, platform and processes.
[00:23:55] Cause ultimately, like technology would be helping you with, giving you a platform which would kind of automate a lot of the things, which you, were doing manually. Then the processes, which are there, you just need to kind of simplify the processes, both for the employees, also for the customer also.
[00:24:10] And at the end of the day, this platform and the processes will be used by people. So a lot of empowerment is something which needs to be given to the people so that the decision making is very, very fast. Again, it's a combination of these three Ps people, platform, and processors, which, which is, about the CRM also, like, again, when I'm talking about the CRM implementation, once starting is done, so like, the complete flow would be CRM would be enabling a good level of engagement, which would be increasing the loyalty.
[00:24:38] Now, this loyalty would be increased either by a loyalty program or through the tactical promotion, which the brand would be,
[00:24:44] Jiten: right.