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Copyright © 2010, SAS Institute Inc. All rights reserved.
Precision Marketingthrough Customer Intelligence
Pamela Morales
Business Development Manager
Customer Intelligence
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Copyright © 2010, SAS Institute Inc. All rights reserved.
World’s Largest Privately Held Software Company
• SAS is the market leader in Business Analytics
• Founded in 1976; based in Cary, North Carolina
• Profitable every year for the past 34 years
• FY2009 revenue grew 2.2% to record of US$2.31B
• Around 11,000 employees in more than 400 offices
worldwide
• More than 45,000 sites in 113 countries
• 91 of the top 100 companies on the 2008 FORTUNE
Global 500® list are our customers
• Named no. 1 workplace in US in 2009
• 23% of revenue devoted to R&D
Top R&D SpendersPercentage of Total Revenue
Source:
SoftwareMag.com
October 2006
23%
16%
13%
13%
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Fully-owned subsidiary of SAS Institute (USA)
Continued revenue growth year on year
19 years in the Philippines
Over 100 employees and growing; where 70%+ from consulting & support
Local installed sites across industries with hundreds of local users across various departments of the organization
Appointed SAS Center of Excellence (COE) in Asia Pacific
Designated as the Regional Hub for the Pacific Region
Local Presence – SAS PhilippinesConnecting with Customers
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Risk Customers
Workforce Planning & Management
Performance Measurement & Reporting
IT Performance Management
Sustainability/Green Initiatives
Marketing Optimization
Capital Allocation & Management
Regulatory Compliance
Legal/Financial Consolidation & Reporting
Cost & Profitability Management
Fraud/Financial Crimes
Customer Link Analytics / Social Media Analytics
Cross-Sell & Up-Sell / Real Time Next Best Action
Acquisition, On-Boarding & Retention
Customer Profitability & Relationship Pricing
Event-based Marketing / Customer Lifecycle Mgmt
Operational Risk
Asset/Liability Management
Market Risk
Credit Risk/Counterparty Risk
Firmwide Risk
Finance Operations
SAS® for Banking
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Precision Marketingthrough Customer Intelligence
Pamela Morales
Business Development Manager
Customer Intelligence
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Copyright © 2010, SAS Institute Inc. All rights reserved.
The TV used to be THE tribal camp fire…
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…but now it’s just another light source.
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The World Has Changed
Limited consumer tolerance for marketing
Increased demand for marketing accountability
Technologically and socially empowered consumers
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Consumers’ buying dynamics changed
Complex dynamics due to multiple channels and social media influences
User Experience
Competitor Content
& Value Prop
Recommendations
From Friends
Social Media & Peer
Review
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Copyright © 2010, SAS Institute Inc. All rights reserved.
To seal the relationship with you and the customer
“We see our
customers as invited
guests to a party, and
we are the hosts. It's
our job every day to
make every important
aspect of the
customer experience
a little bit better.”
Jeff Bezoz, Amazon
Getting the R back into CRM
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Getting the R back into CRM
To seal the relationship with you, the customer
Listening and answering
In a timely and insightful way
With a clear and cohesive message across channel
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Time / insight
Cu
sto
me
r V
alu
e
WelcomeProgram
Target/acquire prospect
Pro-activity based on “If” events:
- Lifetime- Usage/purchase- Behaviour
Attrition Prevention
Cancellation
Cross Sell / Up Sell
Service Prioritization
Managing the Customer Lifecycle
Acquisition Development Harvest Win Back
Event (Behavior)
Triggered InsightsPredictive Analytics Optimization Real Time Analytics
Analytics
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Copyright © 2010, SAS Institute Inc. All rights reserved.
FinancialsDWExternal TransactionBilling RM CIF CRM
Precision Marketing Framework
Supporting a common customer experience
Prioritized Offers
Consistent treatment
across channels
Conversational Data
Customer‟s goals &
existing relationships
O
U
T
B
O
U
N
D
I
N
B
O
U
N
D
Event (Behavior)
Triggered InsightsPredictive Analytics
Branches Call CenterInternet Banking Direct Mail Mobile / EmailATM
Optimization Real Time Analytics
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Precision Marketing via Analytics: A widespread strategy
Use of Predictive Analytics to Target Right
Event-based Marketing and the
Closed-Loop Customer Experience Management
Marketing Optimization to maximize customer
value while saving marketing spend
Real Time Analytics for dynamic pricing during
inbound interaction
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Use of Predictive Analytics to Target Right
Event-based Marketing and the
Closed-Loop Customer Experience Management
Marketing Optimization to maximize customer
value while saving marketing spend
Real Time Analytics for dynamic pricing during
inbound interaction
Precision Marketing via Analytics: A widespread strategy
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Copyright © 2010, SAS Institute Inc. All rights reserved.
$223b (assets) 6th largest US
14 million customers
16 million transactions-daily
20,000 bankers
193,000 banker leads/month
Gold Medal Award: Feb‟08
Multi-Channel Sales Optimization
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Copyright © 2010, SAS Institute Inc. All rights reserved.
"A change in behavior can be like a
customer raising her hand to say, „Hey, I
have a new need‟… That's when customers
really need to hear from a banker."
Richard MartinoSenior Vice President, Market Information and Research, US Bank
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Event Based Marketing responds to customer’s needs by interpreting significant life or behavior changes.
“Let me find a group of
people to tell about it.”“I have an offer …”
offer
Traditional Marketing
“Let me find the best offer
to fit this person’s need.”
offer
offer
offer
offer
“Let me find the best offer
to fit this person’s need.”
offer
offer
offer
offer
offer
offer
offer
offer
“I have a person with a
change in behaviour that
suggests a need…”
Event Based Marketing
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Illustration of using Customer Behavioral Events
Be
ha
vio
r
Time
Record ticket size spend
Sudden spend on a single item that
exceeds all previous average transaction
amount. ACTION:
offers discounts in complementing
merchant category
offers flexible installments to keep
balances within the Bank
Increasing use of On-line channels
Double transactions in e-channels compared to
previous months.
ACTION
Encourage bills payment using
online facility
Shift to e-channels
High SA decreasing balance
Regular high SA account balance sudden
50% decrease (consecutive withdrawals).
ACTION: Timed service call
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Copyright © 2010, SAS Institute Inc. All rights reserved.
A Customer Experience Framework
Single View of
the CustomerBanker Leads & Alerts
Performance
Improvement
• Sales force mgt.• Closed-loop feedback
Customer
Banker
Analytics &
Customer Decisions
• Segmentation and Analytics • Behavioral Event Triggers• Campaign Management• Optimization
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B.L.A.S.T
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Results
Sources of Revenue by Contact Strategy
Event -
Based
Marketing
53%Traditional
Marketing
29%
Reactive
Marketing
18%
Incremental Revenue Forecast
2004 2005 2006 2007 2008 2009 2010
Do
llars
in
Millio
ns
Average Customer Value
Up 144%*
Event Triggered-Leads
Drive ½ of Revenue Gains
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Use of Predictive Analytics to Target Right
Event-based Marketing and the
Closed-Loop Customer Experience Management
Marketing Optimization to maximize customer
value while saving marketing spend
Real Time Analytics for dynamic pricing during
inbound interaction
Precision Marketing via Analytics: A widespread strategy
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Marketing Challenges
• Multiple marketing channels with lots of products to choose from
• Limited channel capacity
• Need to improve ROI by leveraging the cost differential of all channels
• Need to enhance customer experience across touch points
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Marketing Challenges
Activity Planning
Capacity Budget
Target KPIs
Time
Contact Rules
Prioritization of campaign based on
objectives (e.g. Retention over Xsell)
Number of contacts allowed by the
budget and channel capcity
Key indicators that needs to be reached (e.g. contact rate of 10%, response rate of 20%)
Duration of the campaign
Minimum or maximum frequency of
contact with customers
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1 Million Customers
> 10 Campaigns
Limitations
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Activity Planning
Capacity Budget
Target KPIs
Time
Contact Rules
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1 Million Customers
> 10 Campaigns
Limitations?
It‟s
Complicated!
Marketing Challenges
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Activity Planning
Capacity Budget
Value Creation
Potential
Consistency
Contact Rules
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1 Million Customers
> 10 Campaigns
Constraints
Maximize Expected Revenue!
Get the most out of your
Marketing Spend!
Optimized Contact
Marketing Optimization
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Results/Benefits
• Increased campaigns from 5-6 per year to 30-60
• Generate about 6 million leads per year
• Improved annual growth and retention
• More than a 100% ROI
By using SAS, we‟re getting an ROI
in excess of 100 percent – a
significant return for the cost of the
solution. The way we‟re able to
integrate the software within our
overall campaign and customer
contact strategy is giving us a
significant edge over our
competitors.”
Vic Moschitto, Director and Head of
Decision Support and Management
for Canadian Banking
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Use of Predictive Analytics to Target Right
Event-based Marketing and the
Closed-Loop Customer Experience Management
Marketing Optimization to maximize customer
value while saving marketing spend
Real Time Analytics for dynamic pricing during
inbound interaction
Precision Marketing via Analytics: A widespread strategy
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Case: Barclays
The Bank’s Business Challenges
Barclays was challenged by the legacy manual mortgage
application evaluation process which caused the following pains:
No differentiation from the competition who had similar
processes
Agonizing customer experience in filling many forms and
providing many documents
High processing cost per application
Lengthy approval cycles
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Case: Barclays
The Bank’s SolutionBarclays partnered with SAS to develop an on-line „Pre-Approved
Mortgage Limit Framework‟ (PAML) for existing customers.
Barclays
Customer Data Mart
SAS
Real Time Analytics
Solution
Default
History
Demo-
graphics
Transaction
History
Account
History
Internet
Call Center
Branch
KiosK
Customer ID
Mortgage Limit
Customer
Barclays Delivery Channels
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Internet Banking Scenario-ILLUSTRATION PURPOSES ONLY-
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Internet Banking Scenario-ILLUSTRATION PURPOSES ONLY-
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The Latest Buzz in Analytics
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What’s Hot in Analytics?
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Expanding your vision about your customers
Focus on how customers interact with your organisation
Focus on how customers interact with each other
Customer-level analysis Customer Link analysis
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What is Social Network Analysis (SNA)?
The practice of linking individuals that are tied based on “interchanges” (transactions) and measuring the strength of their
relationships.
SNA is also known as Customer Link Analysis.
Area of Influence of
the leader
Leader
Follower
Outlier
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How is Customer Link Analysis done?
Visualize Community / Network
Assign Roles
Measure social influence
Target customers based on community status and behavioral changes within communities
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Customer Link Analytics
Potential Use Cases
Acquisition
Viral Marketing
Fraud Prevention
Trial new products
e.g. provide key influencer with latest handset
Dynamic Pricing
e.g. special rates on “roaming” communities
Predict and prevent contagious attrition
e.g. identifying influencers at risk from attrition
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Community
Outlier
Marginal
Very few connectionsBridgeconnectors between different communities
Leader
Community
Use Case #1 – Cross-sell “Leaders” for “viral” EffectCapability:
•Identify “Leaders” &
better understand new
product adoption
Marketing Action:
•Target cross / up-sell
strategies to “Leaders” 1st –
leveraging “viral” adoption
Benefit:
•Extend the impact of
marketing spend
•Increase revenue per
customer
Follower
Follower
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Community
Outlier
Marginal
Very few connectionsBridgeconnectors between different communities
Leader
Community
Use Case #2: Improve Retention of “Followers”
Capability:
•Know when a
“Leader” attrites
Marketing Action:
•Target retention strategies
to “Followers” at-risk
Benefit:
•More efficient timing &
targeting of marketing
$‟s
•Reduced attrition /
improved retention
Follower
Follower
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Community
Outlier
Marginal
Very few connectionsBridgeconnectors between different communities
Leader
Community
Use Case #3 – Improve Acquisition Targeting Capability:
•Profile & deepen
understanding of key
“Leaders”
Marketing Action:
•Target acquisition strategies
to “Leaders” coming from
Competitors
Benefit:
•Acquire “Leaders” and
“Followers” within
competitor-driven
networks
Follower
Follower
Competitor
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Copyright © 2010, SAS Institute Inc. All rights reserved.
SAS solution proved that acustomer’s attrition propensity doubles if a network neighbour recently churned
SAS also observed „second wave‟ contagious attrition
Customer link analysis in action
Initial event
Subsequent contagious
events
Handset adoption could be up to
6 times more effective by using a
viral campaign to drive take up
Price plan adoption could increase
by up to 17 times by using a viral
campaign to drive take up
*Note: The findings were based on sample data –effects likely to be stronger on full data set
Leader
Case Study: A Major Telco in UK
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What’s Hot in Analytics?
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Social Media Analytics - Questions addressed…
Online Conversations
Brand & Market
Tracking
PR & Reputation Tracking
Customer Feedback
Mgmt
Online Media
Analysis
• What consumers say about your
brand? Products? Competition?
• What journalists, bloggers
say about your firm?
• Threat to reputation?
• Opportunity for advocacy?
• Where are consumers talking?
• How is volume trending?
• What are customer saying to you?
• Compare “market perception” to
your direct customer feedback?
• What is the impact?
• Who are the influencers?
• Most influential sources?
• Which sites are more
positive? Negative?
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Copyright © 2010, SAS Institute Inc. All rights reserved.
What is Social Media Analytics?
A solution that organizes and simplifies the wealth of data across online and social media sources -- in a way that makes it easy for you to act on…
Capture online data
• News
• Blogs & Forums
• Reviews
• Networks
Clean & organize
• Brand, Product
• Geo/Demo
• Sources
• Time
Explain & Predict
• Topics
• Sentiment
• Volume
• Influence
Determine actions
• Dashboards
• Reports
• Alerts
• Workflow
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Web Crawling Data Stores
BlogData
Web TrafficData
Reviews MediaData
Call logsSurveyData
Data Mining
Correlation & Forecasting
Text Mining Natural Language Processing
TaxonomiesInfluence
& EngagementHybrid Sentiment
AnalysisText Clusters & Segments
Media Portal Media Workbench
Collect
Clean
Integrate
Organize
Sample Online Sources
Classify & Segment
Analyze & Act
Mine & Forecast
SAS Social Media Analytics Framework
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What is the consumers’
general sentiments
towards our Brand?
Where does the negative
sentiments mostly come from?
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How does the sentiments grow over time ?
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Which social media source
have the most Influencers?
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Which words are often
appearing in the sources and
what sentiments do they
connote?
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Precision Marketing Using Customer Intelligence
Predictive Analytics
Event-based Marketing
Marketing Optimization
Real Time Analytics
Social Network Analysis
Social Media Analytics
New
New
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Copyright © 2010, SAS Institute Inc. All rights reserved.
by Robert Craven
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Copyright © 2010, SAS Institute Inc. All rights reserved.
“Consumers are like roaches, we spray them with marketing and for
a time it works. Then inevitably they develop a resistance.”
Bond & Kirshenbaum – “Under the Radar
– Talking to Today’s Cynical Consumer”
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Copyright © 2010, SAS Institute Inc. All rights reserved.
Then, the Question is…
How do I make every interaction with them
Precise and Relevant ?
Copyright © 2010 SAS Institute Inc. All rights reserved.