SAS Customer Intelligence Group Presentati… · Management Manage Customer Value Customer...

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


ObservationsObservations


Experiential Champion (Mature Capability)

Experiential Master (Optimized)

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


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


Product Hostage

Customer Enthusiast

Customer Activist

Experiential Champion

Experiential Master

2%

24%20%

0%1%

22% 23%

3%

Canada vs. Global BenchmarkCanada vs. Global Benchmark


Insight Insight


InsightInsight % Good / Excellent


InteractInteract


InteractionInteraction % Good / Excellent


Improve Improve


ImproveImprove

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% Good / Excellent


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Business Processes Enabling Technology

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


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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� 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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Awareness Differs from Practice Awareness Differs from Practice


Customer Value ManagementCustomer Value Management

CustomerCustomer

• Plan and build the data repository around customers and households

• Foundation of CVM


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


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


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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


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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


• 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


– 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?


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


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


� 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 ��


� 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


� 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


� 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”


Thank You

SAS Customer Intelligence Group Presentati… · Management Manage Customer Value Customer...

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