bi mktg presentation - using business intelligence for marketing and sales analysis
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Using Business Intelligence for Marketing and Sales Analysis Vispi Munshi CEO - ERP India http://www.erp-india.org [email protected]TRANSCRIPT
1Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Vispi MunshiFounder - ERP [email protected]://www.erp-india.com
2Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Today’s Agenda
- Introduction
- Marketing and Sales Functions
- What is Business Intelligence
- Data Analytics, Dashboards
- Data Mining, Predictive Analytics
- Examples of using BI in Marketing and Sales
- Blueprint of a Marketing Intelligence System
- Measuring Marketing and Sales performance, Scorecard
- Analytics Demo
- Conclusion, Q&A
3Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Ground Rules
- Please turn mobile ringer to SILENT MODE
- If you have to take a call, please leave the room and then start talking
- Questions can be asked any time
- Before asking question, raise your hand
- No talking with each other
- Disagreements allowed, but no disrespect
- Timeframe awareness
- Lets learn from each other and increase our knowledge
4Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Introductions
- Full Name
- Where do you work (Company/Consultant/Student etc)
- Your job designation and responsibilities
- Any BI tool you have already used?
- Expectation from this workshop
5Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
What is Customer Relationship Management
CRM is about identifying and acquiring new customers, and maintaining and enhancing relations with valued customers.
Customer
DemandCreation
LeadGeneration
Lead Mgnt
OrderMgnt
Quoting
Contracts
ServiceMgmt
Opportunity Mgnt
6Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Key Marketing and Sales functions
- Demand Creation (Marketing Campaigns, Promotions)
- Identify and Acquire customers (Sales Lead management)
- Proposal/Quotation and Order processing
- Order and Contract Management
- Sales Channel Management
- Product and Territory Management
- Pricing
- Loyalty Programs
- Surveys (for feedback)
7Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Identifying and Acquiring Customers
Call Center
Field Staff
Your Web Site
Partners
External Sources
Suspects
Prospects
Leads
SALE
Referral
Repeat
8Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
What is business intelligence?
Business Intelligence is a term generally used to identify a class of Information System applications useful for supporting operational, tactical and strategic decision making of a organization.
BI deals with producing (and presenting) Accurate, Relevant and Timely (ART) INFORMATION from integrated data.
Not Accurate: Users loose faith in system
Not Relevant: Users ignore the system
Not Timely: Users find alternatives to the system
9Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Benefits- Sales Optimization
- Cost Reduction, Planning and Budgeting
- Inventory Optimization
- Purchase Optimization
- HR Optimization
- Production / Manufacturing Optimization
- Demand Forecasting
- Market Competitive Analysis and Customer Relationship Optimization
- Supply Chain (Sales and Distribution) Optimization
- Most Important is ART Information to support all levels of Decision Making
- Aim is to replace/reduce Excel based Analysis
10Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
BI System Anatomy
BACK-ENDData Collection and
Integration Tools
ERP
Ecomm
CRM
Files
….
Data Mart
Forecasting, Mining
PRESENTATION
FRONT-END
Analytics, Visualization, Dashboards, …
DISTRIBUTION
Alerts, Email, Mobile, Intranet ….
11Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Backend BI Tools: Used for collection, integration and consolidation of data from various sources.
Intermediate BI Tools: Allows users to create forecasts and identify trends (data mining) from the data.
Frontend BI Tools: Provides users with a interactive and intuitive interface to view the information generated.
12Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
- Based on multi-dimensional view of data (cubes)
- Pivot Table demo
- Features for drilling in and across data
- Slicing and dicing of data
- Graphics capabilities
- Similar to Excel
- Exception reporting
- Data Analyst would use such tools and create Reports/Analysis/Graphs (objects)
- These objects would be supplied to Executives using Dashboards, Alerts etc.
Data Analytics (New Age Decision Support Systems)
13Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Multi-dimensional Data
14Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
High-end: Business Objects, OBIEE, Microstrategy, …
Open Source: http://en.wikipedia.org/wiki/Business_intelligence_tools
Data Analytics Tools in Market
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Using Business Intelligence for Marketing and Sales Analysis
Dashboards and Alerts
- Dashboards are collection of reports/analysis/graphs
- Alerts are specific events that the system finds and sends a email/sms etc to the executive
- Key Performance Indicators (KPI’s) can be set and linked to alerts
- Linking across objects provides executive with ability to go through the generated information in a very intuitive manner
16Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
17Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Data Mining
- Also known as KDD (Knowledge Discovery in Databases)
- Involves use of large data sets
- Involves uses of Statistical Methods, Database Systems and Artificial Intelligence
- The objective is to discover patterns or knowledge from existing data
- Involves four step process: Data Preparation (classification), Hypothesis (user provided guidance), Discovery (of knowledge) and Validation (of discovered knowledge against hypothesis)
- Techniques: Classification, Clustering, Association Rules, Regression
- Predictive Analytics
- High end tools: SPSS, SAS, …
- Open Source: http://en.wikipedia.org/wiki/Data_mining
18Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Data Visualization- Presents a intuitive graphic representation of the data and generated
knowledge
- The visualization is a embedded feature in most Analytics and Mining tools
19Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Predictive Analytics - Combines Data Analytics and Statistical techniques to provide a interactive
tool
- encompasses a variety of statistical techniques from modeling, machine learning, and data mining that analyze current and historical facts to make predictions about future, or otherwise unknown, events
- Recency, Frequency, Transaction Value, Demographics
- Classification, Clustering, Association Rules, Regression
- http://en.wikipedia.org/wiki/Predictive_analytics
20Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Marketing and Sales Metrics
- Cost per lead generation
- Proposal turnover time
- Lead closure rate
- Lead closure time
- Sales Channel utilization
- Customer Retention/Churn rate
- Campaign Effectiveness
21Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Using BI for Marketing and Sales Examples
- Example 1: Predicting which Customers are likely to switch to competitors
- Example 2: Predicting which Customers can be cross sold
- Example 3: Predicting lead success probability & providing recommendations
- Example 4: Focusing Marketing Campaigns
22Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Predicting which Customers are likely to switch to competitors
Past Customer Records- Transactions- Demographics- Buy Behavior
Past Switch Records
Create Model (Association Rules, Clustering
Switch Model (Decision Tree, Neural Network)
Current Customer Records- Transactions- Demographics- Buy Behavior- Service Records
Prediction Algorithm (Classification)
Switch Predictions
Analytics
Service Records
23Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Predicting which Customers can be cross sold
Past Customer Records- Transactions- Demographics- Buy Behavior
Past Cross Selling Records
Create Model (Association Rules, Clustering
Cross Sell Model (Decision Tree, Neural Network)
Current Customer Records- Transactions- Demographics- Buy Behavior- Service Records
Prediction Algorithm (Classification)
Cross SellPredictions
Analytics
Service Records
Product Cross Sell Possibilities
24Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Predicting lead success probability & providing recommendations
Past Leads-Attributes- Campaign- Sales Channel
Conversion Results- Success or Failure- Reasons- Process followed
Create Model ( Clustering)
Conversion Model (Decision Tree, Neural Network)
Current Leads
Prediction Algorithm (Classification)
Conversion ProbabilityPredictions& Recommendations
Analytics
25Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Focusing Marketing Campaigns
Past Prospects/Leads Conversions and Failures
Demographic Data
Create Model (Association)
Model (Decision Tree)
Shortlisting
Prospect List Shortlisted
Prospects
High
Medium
Low
26Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
More Ways to use BI
- Customer Profitability Analysis: which customers to value?
- Ecommerce Site User behavior analysis: Make special offers to convert suspects to prospects and leads, depending on which pages of the site the suspect has visited
- Call Center Log Analysis: identifying leads using data mining or predictive analysis
- Customer Retention: identify potential leads, renewal offers
- Customer Relation Extension: identify potential leads based on service records
27Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Marketing and Sales Intelligence System
BACK-ENDData Collection and
Integration Tools
ERP, CRM
Sales
Industry data
….
Marketing Data Mart
Forecasting, Mining
PRESENTATION
FRONT-END
Analytics, Visualization, Dashboards, …
EXTRANET ACCESSTo
PARTNERS (Marketing Portal)
ALERTS by email and mobile to Sales Force and Partners
28Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Measuring Performance: For each Campaign or Sales Channel
New Customers: 5678, 7%
Acquisition Cost: 2500/-
Lead Closing %: 34%
Renewal %: 77%
Extended Relations: 345, 1.3M
Recovered Relations: 45
29Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
30Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Analytics Demo
31Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org
Using Business Intelligence for Marketing and Sales Analysis
Q&AThank You
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