The Future of Customer Analytics

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The Future of Customer AnalyticsTimo Elliott, Jan 30, 2014 Public

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2Public

Our customers produce more than

65% of the coffee and tea we drink each day



70% of the world’s chocolate.


Our customers

produce 64% of the world’s ice cream.



72% of the world’s beer.

© 2014 SAP AG. All rights reserved. 6

[email protected] @timoelliott timoelliott.com

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Customer Analytics Trends

73% of people surveyed wouldn’t care if the brandsthey use disappeared from their life.

Source: Co.Exist

Millennials trust strangers over family and friends. They lean on User-Generated Experiences for purchase decisions.

Source: Brian Solis’ Future of Business, 2013

http://www.slideshare.net/briansolis/official-slideshare-for-whats-the-future-of-business

70% of buying experiences are based on how the customer feels he or she is being treated.

Source: McKinsey

http://www.mckinsey.com/

More than 70% of customers surveyed believe small businesses understand their customer better than large companies, know their business/product better than large companies, provide a more personal customer service experience than large companies and are more concerned about my needs than larger companies.”

Source: : American Express Global Customer Service Barometer, 2012

On average, loyal customers are worth up to 10 times as much as their first purchase.

Source: White House Office of Consumer Affairs

http://www.whitehouse.gov/

80% of CEOs think they deliver a superior customer experience

Source: The New Yorker

-- but only 8% of customers agree.


The #1 Use of Big Data is Customer Analytics

Source: McKinsey

https://www.mckinseyquarterly.com/Minding_your_digital_business_McKinsey_Global_Survey_results_2975


Which Business Decisions Benefit Most From Big Data?

Source: McKinsey

Market opportunity and segmentation

Customer retention

Products and service mix

https://www.mckinseyquarterly.com/Minding_your_digital_business_McKinsey_Global_Survey_results_2975


What Is “Big Data”? The Google Summary


Big Data is at Peak of Inflated Expectations…

…but BI & Analytics still #1 Technology priority for 2014

Source: Gartner

Descriptive:What happened?

Diagnostic:Why did it happen?

Predictive:What will happen?

Prescriptive:How can we make it happen?

Analytic maturity

Hindsight Insight Foresight

By 2017, there will be close to $11 Billion in revenue from35-million homes using home automation platforms across the globe.

Source: GIGAom, 2013

http://gigaom.com/2013/09/01/last-week-on-research-smart-homes-and-the-internet-of-things/

Wearable devices have grown by 2x month over monthsince October 2012.

Source: Mary Meeker’s Internet Trends, 2013

Photo: Intel Free Press

http://www.slideshare.net/kleinerperkins/kpcb-internet-trends-2013


The “Datification” of Daily Life


“We’ll put more computers in our laundry in a week than we’ve used in our lifetime so far”

Gartner


Put Lego here – the nice lego flash file!


Discover Hidden Trends


You Are Being Watched


Is Your TV Spying On You?


Spy Chips?


Edward James Snowden

Edward Joseph Snowden


Information becomes what you sell…

i

i i

Businessownership

ITownership

HBR: “Analytics 3.0”


Predictive


Understanding Customers


Barclays


Track Who Likes Your Products (And Why, And When…)


Social Analytics


Orange Poland (Telekomunikacja Polska)

Churn model accuracyimproved by 47% withsocial


“Data-driven decision making played a huge role in creating a second term for the 44th President. In politics, the era of big data has arrived.”

- Time Magazine

Engage Your Fans


What, When, and Where


Optimizing Sales


Deliver The Right Offer To the Right Customer At The Right Time

Modeling time from 3 months to 3 daysUp to 4x increase in campaign response ratesFrom product to customer marketing


Add Customer Value in Real-Time


Coinstar

• Inventory Optimization

• Real time Offers

• Servicing


Perfect Your Pricing and Packaging


Personalized Offer Testing


Optimize The Customer Experience With “Playnomics”


Customer Experience


Reinvent Luxury Service


Be A Trusted Advisor


SAP Fashion Retail Brand Insight


Experience Intelligence Center

Event Interception

Business Transformation

Make People Happy

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Make People Happy


Mapping stores on STM lines and stations

• STM Partners’ stores.

Create a Commerce Eco-System


• Interact with consumer in the field• Run mobile marketing campaigns based

on consumer profile and location

• Interact with consumer in real-time anywhere, anytime.

• Design & run mobile marketing campaigns based on consumer profile and location

• Analyze consumer behavior in the field

Create a Commerce Eco-SystemA platform for real-time interactivity between consumers, STM and partners

SAP Precision Retailing(On-Demand, Multitenant, High Performance, Scalable)

• Receive information, discounts & Special offers

BI

CRM

Merchants

Outings

Transports

Partners


A Personalized, Multi-Vendor Customer Experience

Valid at this time

For my profile (segments)

In the store(s) nearby

Eligible offers

Top x

What time is it ?Where am I?

What is my personal profile?What is my CRM profile?

Select Rate & Order Deliver & Learn

What are my preferences ?Where am I?

What is my personal profile?What is my CRM profile?

The rating is based on the learning engine and on the characteristics of the shopping context, the consumer preferences, and the frequency of presentation.


Omni-Channel Retailing

ERP Warehouse PLM CRM Data Pools Suppliers

BACK OFFICE

master data

platform

omni-channel logicorder orchestration

omni-channeltouch points

FRONT OFFICE

TV console POS mobilecall

center printsocialWeb


Advanced personalization


Sharing Analytics With Your Customers


What Do These NBA Players Have in Common?

D.J. Mbenga

Tony Parker

Xavier Henry


Engage Your Fans


Sailing


http://global.sap.com/campaigns/superbowl-2014/index.html


Superbowl Predictions


Engage Your Citizens


Engage Your Students

“In the past five years, taxpayers have spent $9Bn on college students who drop out before year two”


Learn Then Act“Saving 1% in Student Retention can save my University’s bottom line $1M a year”


Make Yourself Invaluable


Data To Partners


Fleet Management Customers


Aggregate Insights


Conclusion


Technology is Important – But It’s Not About Technology

“The stone age was marked by man's clever use of crude tools; the information age, to date, has been marked by man's crude use of clever tools.”


Innovation And Design Thinking


Unwire your business to deliver secure, real-time, business-critical information – anytime, anywhere, to anyone, on any mobile device.

Run your business smarter, faster, and simpler, with an integrated suite of applications powered by SAP HANA – delivering long-term predictability and nondisruptive innovation.

ApplicationsExplore and exploit data, find answers in real time, and make confident decisions. Harness visually compelling, easy-to-use tools on the devices of your choice.

Analytics

Mobile

Simplify your IT infrastructure dramatically and drive high-value innovation by exploiting across structured and unstructured data sources.

Database & Technology

A real-time business platform, powered by SAP HANA

Our portfolio combines the best of next-generation technology to help you innovate, transform and grow

Capture the power of the cloud – while fully integrating with on-premise investments. Empower your employees, engage customers, and collaborate with partners across business networks.

Cloud


Thank you!

Timo Elliott, SAP

[email protected]

Twitter: @timoelliott

Blog: timoelliott.com

The Future of Customer Analytics

Technology

Transcript of The Future of Customer Analytics