McKinsey launches new data-driven toolkit

Consulting firm McKinsey & Company has launched CustomerOne, a toolkit designed to help businesses “accelerate personalization and customer value management.” The tool can be used by private brands, a retail sector which McKinsey has done research on recently.

CustomerOne uses analytics, ready-to-use assets and tools, and “agile principles” to optimize each stage of the customer journey. The tool aims to help organizations shift from business-driven campaigns to customer-centric, data-driven campaigns that are connected, intuitive, and personalized.

"Personalization can be an effective lever in driving the right customers to private label offerings based on dimensions like their past purchases, category propensity, or behavioral attributes, and can also support business objectives such as increasing private label penetration or aiding in product discovery," said Wei Wei Liu, associate partner at McKinsey & Company. "Advanced analytics can unlock customer segments and determine relevant product recommendations and/or next best actions to increase conversion and customer lifetime value. For example, propensity models can determine which customers to target with which brands or categories, including private label offerings."

McKinsey & Company derived CustomerOne from a “battle-tested” approach that has helped marketing teams realize up to a 10-20% revenue lift, 5-10x increase in testing speed, and 20-30% higher satisfaction and engagement from customers, according to the firm.

“The leaders who achieves the best results from personalization and customer value management focus on long-term drivers of growth and emphasize customer lifetime value. It’s a force multiplier and a business necessity,” said Greg Kelly, senior partner and global leader for the marketing and sales practice at McKinsey & Company. “Those who can activate the capability at scale can put customer lifetime value on a new trajectory— driving double-digit revenue growth, superior retention, and richer, long-term relationships.”

 CustomerOne gives organizations direct access to McKinsey’s specialized functions and disciplines, with more than 2,000 marketing experts and more than 180 advanced analytics practitioners.

“The results we’re seeing — for example, driving a threefold increase of cross-product sales at a telco provider — are a testament to the power of CustomerOne,” added Kelly. “This approach delivered more than $100 million in less than 20 weeks at an iconic retailer and reduced mortgage churn at a retail bank by 20%.”