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Copyright © 2006, SAS Institute Inc. All rights reserved.

SAS Customer Intelligence The state of analytics in Canada

Consider Customer Value Management with Customer Intelligence platform

Our Journey TodayOur Journey Today

Copyright © 2006, SAS Institute Inc. All rights reserved.

ObservationsObservations

Copyright © 2006, SAS Institute Inc. All rights reserved.

Experiential Champion (Mature Capability)

Experiential Master (Optimized)

Customer experience is a primary source of competitive advantage. Continuous customer learning & improvement is automated & optimized.

Copyright © 2006, SAS Institute Inc. All rights reserved.

Product Hostage (No capability):

Organizations are not taking action and have no capabilities to do so. Primarily product-driven.

Customer Enthusiast (Limited capability):

Early signs of customer centricity are surfacing. Connecting customer data across a few products and touch-points

Customer Activist (Developed capability):

Customer data is linked across all products & touch-points. Customer insights are beginning to impart customer knowledge.

Experiential Champion (Mature Capability)

Enterprise customer-centric strategy well-established. Customer insights are robust & predictive.

54%52%

Canada Respondents Global Benchmark Respondents

Maturity ContinuumMaturity Continuum

Copyright © 2006, SAS Institute Inc. All rights reserved.

Product Hostage

Customer Enthusiast

Customer Activist

Experiential Champion

Experiential Master

2%

24%20%

0%1%

22% 23%

3%

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Canada vs. Global BenchmarkCanada vs. Global Benchmark

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Insight Insight

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InsightInsight % Good / Excellent

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InteractInteract

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InteractionInteraction % Good / Excellent

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Improve Improve

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ImproveImprove

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% Good / Excellent

Copyright © 2006, SAS Institute Inc. All rights reserved.

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Business Processes Enabling Technology

Understand Business Process Understand Business Process –– Then Enable Technology Then Enable Technology

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Leverage technology……around the customer!

Focus Remains UnchangedFocus Remains Unchanged

� On behalf of your shareholders, how do you develop:• your brand, • your channel strategies, • your product and service portfolio

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15

� In order to attract and retain those customers whom you are best equipped and skilled to generate value from?

� And how do you enable (enforce) your strategies through your customer facing representatives?

CEO CEO ConcernsConcernsRemains Remains Unchanged Unchanged

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16

Awareness Differs from Practice Awareness Differs from Practice

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Customer Value ManagementCustomer Value Management

CustomerCustomer

• Plan and build the data repository around customers and households

• Foundation of CVM

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ValueValue

• Measure value• Profitability now and

forecast lifetime value

ManageManage

• Proactively manage and target marketing and sales initiatives

• To optimise business value from strategic segments

SAS For Customer Value ManagementSAS For Customer Value Management

Plan & Build CustomerData Repository

Measure Customer Value

Copyright © 2006, SAS Institute Inc. All rights reserved.

19

Customer ValueManagement

Manage CustomerValue

Customer SegmentationManagement

SAS For Customer Value ManagementSAS For Customer Value Management

Plan & Build CustomerData Repository

Measure Customer Value

Name & Address Hygiene

Customer De-duplication

Householding & Inter-customer Relationships

Transactional Data Repository

Organisational Cost Data Repository

Current Customer Profitability

Customer Life Time Value

Activity Based Costing

Predictive Analytics & Forecasting

Copyright © 2006, SAS Institute Inc. All rights reserved.

20

Customer ValueManagement

Manage CustomerValue

Customer SegmentationManagement

Repository

ETL Process AutomationAcquisition Cost Evaluation

Value Based Segmentation

Geodemographic / Lifestage

Attitudinal / Behavioural

Segment Volume and Migration Analysis

Scorecarding and KPI Reporting

Outbound Marketing Automation

Inbound Decision Management

Price & Offer Optimisation

Acquisition, development and retention

programs

Product & Channel Management

How SAS How SAS Enables CVM Enables CVM

� SAS Customer Intelligence• Analytics platform • Define – Deliver – Distribute

� Technical and business process for ALL core

Copyright © 2006, SAS Institute Inc. All rights reserved.

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� Technical and business process for ALL core aspects of CVM

� Supplementary solutions that enhance the CVM capabilities even further

� Specific methodologies and best practices built into the Business Intelligence solutions that help deliver CVM in practice

Examples of CVM at Work TodayExamples of CVM at Work Today� Marketing Optimization

• Scotiabank• Qwest• CommerceBank• CBA• Vodafone• Aegon

� Online Web • 1-800-FLOWERs• Octupus Cards• HSBC• Government Agency – UK

• Analytics

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• Aegon

� Marketing Campaigns/Campaign Management

• Northern Tool• Pao de Acurar• ING Direct• SaskTel• Swinton• Staples• US Bank• Santander Bank

• Analytics• Harrahs Hotel & Casinos• Hard Rock Hotel Inc• Sainsbury• Tesco (Dunhumby)• Hjemmet Mortensen

Around the Corner Around the Corner � Social Network Analysis

• Using networks analysis to determine relationships of your customers− Use current internal data− How is their value influenced within these networks− Who has most value (customer, network)

– how can you maintain and increase value

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– how can you maintain and increase value– Who has high CLV and influencer score?

� Sentiment Influence Analysis• What is the perception of your company within WWW? • How does that perception affect your company • How much does a positive/negative perception influence CV• Who has the loudest voice?• What events have little impact?• What events/decisions/voices drive CV?

Copyright © 2006, SAS Institute Inc. All rights reserved.

MOVING IN THE RIGHT DIRECTION REQUIRES…

-- Forrester Research* --

“..aligning the marketing organization around functional

disciplines the 4 P’s…will only grow less effective

in today’s multi-channel world

33--I Solution: I Solution: a business process to manage the…a business process to manage the…� Multi-Channel Customer Experience

� 4 P’s = Tactical Product

Price

Copyright © 2006, SAS Institute Inc. All rights reserved.

in today’s multi-channel world

where consumers demand

the highest level of experiences

as a price for their brand loyalty.

Instead, companies need to migrate toward a

Customer-Centric Marketing Organization…”

-- Peter Kim --

*Peter Kim, “Reinventing The Marketing Organization: Customer Groups Should Trump Channels, Products, Or Geography,” Forrester, July 2006.

Place

Promotion

� 3 I’s = StrategicInsight

Interaction

Improve

Start

Deepen CustomerDeepen Customer InsightInsight

Copyright © 2006, SAS Institute Inc. All rights reserved.

� Integrate Data• Products & channels

• Credit scores & 3rd party

� Predict Behavior• Purchase & attrition • Profitability & potential

� Profile & Segment• Profit, potential, behavior & life stage

Hot Areas…

� Web behavior• On-line + off-line data � agency / branch

action

� Social Networks• Measuring the value of “influencers”

Choreograph CustomerChoreograph Customer ��������������������

Copyright © 2006, SAS Institute Inc. All rights reserved.

� Optimize Strategies• Strategy maps• Campaign optimization

� Engage Customers• In/out-bound campaigns • Behavior-triggers

� Multi-Channel• Electronic: mobile SMS, web, aggregators• People: agencies & call-centers

Hot Areas…

� Optimizing• Multi-channel / multi-product

� Real-time decisioning for..

• Agents• Web / aggregators• Call-centers

Continuously � ���� Performance

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� Manage & Report• Scorecards & web reports • KPIs to align employees

� Optimize Mkt. Investment• Mkt. mix: ad / promo %• Media mix by market

� Learn & Improve• Closed-loop continuous learning

Hot Areas…

� Learning from customers• Differentiating on “experience”• Source of competitive advantage

� Empowering customers• Dynamic-relationship pricing DRP

“Go Crazy” or Do Something Different“Go Crazy” or Do Something Different� Seek external and internal partnerships

• that enable you to demonstrate the value and delivery

� Consider project to demonstrate value of CVM• Measure impact, ROI, business process efficiency/effectiveness

� Think Big – Start Small• Know the direction you can go - select measurable projects

� Start in small way to remove walls

Copyright © 2006, SAS Institute Inc. All rights reserved.

� Start in small way to remove walls• No more Marketing & Analytics –> Marketing Analytics• Stop generating analytical content when there is no consumer or measurement

� The need for a platform• Required for effective and efficient experience

� Place as much focus on translation as creation of analytical content

� The world has already changed!• Recognize the new opportunities & capabilities• Doing the same old things will drive you “crazy”

Copyright © 2006, SAS Institute Inc. All rights reserved.

Thank You

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