retail analytics trends - sassfr2015).pdf · sas retail customer intelligence •define customer...

Copy r i ght © 2015 , S A S I ns t i tu te I nc . A l l r i gh ts r ese rv ed .

RETAIL ANALYTICS TRENDS

DAN MITCHELL, RETAIL INDUSTRY GLOBAL PRACTICE


SAS FOR RETAIL MARKET TRENDS

PERSONALIZATION FRICTIONLESS REAL-TIME


INCREASING TOP LINE

REVENUE

REDUCE COSTS &

IMPROVE PROFITABILITY

SAS IN RETAIL BUSINESS ISSUES

INCREASE CUSTOMER

ENGAGEMENT

PROFIT

COSTS

Acquisition Retention


SAS IN RETAIL HOW TO CRACK THE CODE

$$$ Business Results $$$

Transaction Information

Product Information

Customer Information

• Who are my shoppers

• Where do they shop

• What do they want

• When do they want it

• What products do I sell

• Merchandise attributes

• Where is it in my supply chain

• What is my competition doing?• When

• Where

• Payment method


Analytics are Crucial in Digital Business

• Data sources relatively small and

structured, from internal systems

• Majority of analytical activity was

descriptive analytics, or reporting

• Creating analytical models was a

time-consuming “batch” process

• Few organizations “competed on

analytics”—analytics were marginal to

strategy

• Decisions were made based on

experience and intuition

• Complex, large, unstructured data

sources

• New analytical and computational

capabilities

• Data Scientists” emerge

• Online firms create data-based

products and services

• Analytics integral to running the

business; strategic asset

• Rapid and agile insight delivery

• Analytical tools available at point

of decision

• Cultural evolution embeds

analytics into decision and

operational processes

• Businesses can create data-

based products and services

Big Data + Advanced Analytics + Embedded (real time) Decision Making = Monetization

Source: International Institute for Analytics, 2014


INTERNET OF THINGS ANALYTICS AS A KEY ENABLER

“IoT creates a big data problem that analytics must solve — transform huge volumes of data into a small (readily synthesized by a human

mind) quantity of usable/actionable information.”

- Gartner 2013


DATA OVERLOAD & CHANNEL ATTRIBUTION


CORE ENABLERS FOUNDATIONAL AND INTEGRATED

• Expanded client data

• Balance of privacy vs.

personalization

• Data Governance

• Orchestrated decision-making

• Metrics realignment to customer

management drivers

• Real-time enablement

Operations

Excellence

Data

Management

Analytics &

Visualization

• Customer analytical environments

• Self serve analytics

• Better visualization of data & insights

Big Data

Platform

• Introduce data variety

• Extended data partnerships

• Real-time and contextually aware

insights


Infinite Volume and Variety of Data

Disruptive Technology

New Problem-solving Mindset

UnrivaledProcessing Power


DATA & ANALYTICS INSIGHTS FOR CUSTOMER JOURNEY

Copyright © 2012, SAS Institute Inc. All rights reserved.Copyright © 2012, SAS Institute Inc. All rights reserved.

KNOWPLAN, OPTIMIZE,

ACT

ENGAGE/

INFLUENCE

SAS RetailLocalization, Personalization….and

Relevance

Customer AnalyticsMerchandise Intelligence

Customer Intelligence


SAS RetailCustomer

Analytics

KNOW

• Who are my customers?

• How are my customers

different from one another?

• What similarities do my

customers share?

• What/when/where do my

customers buy?

• How do customers engage

with me?

• How do customers feel

about my brand/product?

• Customer Segmentation & Customer

Profiling

• Market Basket & Behavior Analysis

• Social Media and Sentiment Analysis

• Online/Web Analytics


Proven

Capabilities

Customer

Analytics

• Target

• Zappos.com

• Dick’s Sporting goods

• Land’s End

• Coke

• Best Buy

• Lowe’s

• Macy’s

• Williams-Sonoma

• Pão de Açúcar

• Sobeys

• Cabela’s

• Catalina Marketing

• 10 to 20 percent lift for customers

browsing in new merchandise

categories who had not purchased in

those categories

• 100 percent lift (for the first three

deciles) for women who shopped at the

men's site but had not yet purchased

• 20 percent increase in new member

conversion rates. This is a measure of

customers who join but haven't

purchased

KNOW


SAS RetailCustomer

Intelligence• Define customer

engagement strategy that

balances company

objectives with customer

preferences.

• Personalize customer

interaction with relevant

content at the right time

with.

• Maximize the value of each

customer touch point

through the optimal

allocation of company

assets.

• Campaign Management

• Marketing Optimization

• Targeted Promotions

• Real-Time Offers

• Marketing Mix Analysis

• Marketing Resource Management

• Customer experience

• Mobile AnalyticsCOMMUNICATE/

INFLUENCE


Customer

Intelligence• Colruyt

• The Sports

Authority

• Leroy Merlin

• Chico’s

• Drogerie Markt

• Harry & David

• Bed Bath & Beyond

• SM Marketing

Convergence

• Staples

• Ahold

• Circle K Sunkus

A larger number of households now use our promotional coupons. This increased use of coupons has also resulted in a larger average amount of money spent in our stores by cardholders. Equally important, it indicates a clear increase in customer loyalty.Bart Van Roost

Head of Colruyt’s Analytics Department

COMMUNICATE/

INFLUENCE

Proven

Capabilities

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