What Data Mining brings to Small and Medium sized BusinessesWhat Data Mining brings to Small and Medium sized Businesses

Prety WidjajaSystems EngineerSPSS Inc.

Commonly Asked QuestionsCommonly Asked Questions

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Yes

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www.spss.com/events

AgendaAgenda

Data mining myths

Data mining overview

SPSS as a leader in the Data Mining space

SPSS Clementine

Demo

Key takeaways

Getting started in Data Mining

Data Mining MythsData Mining Myths

Data Mining is only for large companies

Data Mining is all about massive data

Data Mining is a complex technical process

What is Data Mining?What is Data Mining?

Data mining uses existing data to: Predict

Response Category membership

Group Cluster (group) attributes and metrics

together based on their characteristics Associate

Find events that occur together, or in a sequence

Find outliers Identify cases that don’t follow expected

behavior

“The process of discovering meaningful new relationships, patterns and trends by sifting through data using pattern recognition technologies as well as statistical and

mathematical techniques.”The Gartner Group

Who performs “data mining”Who performs “data mining”

Analysts

Business Intelligence users

Business executives

Small, medium, and large sized organizations

Companies in virtually every industry

Data Mining is enabling companies to…

Understand customers better Increase sales Increase profitability Increase website profitability Cross-sell/Up-sell Increase retention/loyalty Detect fraud Identify credit risks Acquire new customers

How and where is data mining being How and where is data mining being usedused

Case Study: CIM’01Case Study: CIM’01

5-year old French Market Research firm

Data mining was included in the business plan and is

considered as a key differentiator

CIM’01 purchased Clementine + Text Mining for

Clementine in 2003

CIM01: Addressing their client’s CIM01: Addressing their client’s business pain business pain

Big pharmaceutical labs spend large $ marketing to many

practitioners

Central nervous system drugs represent a large market

Bottom line: want to improve marketing campaign,

increase ROI.

CIM01: Data + Text Mining Results CIM01: Data + Text Mining Results

Clustering of GPs using both structured data and

unstructured data

Similarities found between general practitioners and

specialists.

Discover a new market previously untapped by the

pharmaceutical lab

ROI achieved!

Data Mining and Predictive AnalyticsData Mining and Predictive AnalyticsPowered by ClementinePowered by Clementine

Industry-leading workbench for

data mining

Pioneered visual approach

Supports the entire data

mining process

Multiple modeling techniques

Easily integrate Clementine

Clementine Supports for a Proven Clementine Supports for a Proven ProcessProcess

CRISP-DM Cross Industry Standard Process for Data Mining Focused on

business issues

Demonstration –World MotorsDemonstration –World Motors

Business Challenge: develop marketing

campaign to increase sales and product

awareness of their hybrid (HEV) car line

Data Mining Goal: determine what factors drive

consumer decision to purchase a hybrid car

What you will learn todayWhat you will learn today

How easy it is to work with different data sources

Discover patterns and trends in the data

Build predictive models to identify what buying factors are important to their customers

How you can apply your results to the their customer base to generate potential lead list for marketing campaign

Copyright 2003-4, SPSS Inc.Copyright 2003-4, SPSS Inc. 15

If you are not automatically taken to the "Shared Application" screen during the demonstration, please click on the "Shared Application" button at the bottom of your screen.

DemonstrationDemonstration

Demonstration Summary and ROI Demonstration Summary and ROI

Combined demographic data and transaction data

Identified simple patterns through data visualization

Generated models to determine what factors drive customers decision to purchase a hybrid car Higher income level than average car buyer ~above

$120K Higher age group level ~ 40s More likely to be female Price is not a decision factor Want to help reduce air pollution

Reduce mailing cost by 30% and yield higher ROI

More on ROIMore on ROISPSS Customer’s successesSPSS Customer’s successes

Banking

Lloyds TSB Saved $ 3.5 million by reducing credit

card fraud

Groupe Banque Populaire (Natexis) generated $ 1.8 million additional

revenue on a lead generation campaign

BankFinancial 7 x increase in response rates, 80%

reduction in costs

Insurance

Aegon Generated $30M additional revenue in

service call center

FBTO Decreased direct mailing costs by 35

percent, increased conversion rates by 40 percent

Telecommunications

Verizon Wireless Cut churn by 20%, saved 33% of “at-

risk” clients

Swisscom Doubled responses on win back

campaigns

Telstra Doubled sales in service call centers

Other industries

Experian Generated $2.5 million in catalog

revenue while reducing hardware and software maintenance costs by 80%

Center Parcs added $ 3 million to their bottom line Reduced mail costs by 46%

Sofmap.com (retail) Tripled profitability of online operations

Nucleus ResearchNucleus ResearchThe Real ROI from SPSSThe Real ROI from SPSS

94% achieved a positive ROI, with an average payback period of 10.7 months.

Returns were achieved through reduced costs, increased productivity, increased employee and customer satisfaction, and greater visibility.

Over 90% of SPSS users surveyed attributed an increase in productivity to SPSS, expressed in increased productivity from existing employees, or reduced the need to hire additional employees.

81% of projects were deployed on time, 75% on or under budget.

“This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports”

Rebecca Wettemann, Vice President of Research at Nucleus Research

Recent AwardsRecent Awards

SPSS Inc. was included in the listing of the annual DM Review 100, which constitutes the top 100 companies in the business intelligence space as determined by DM Review readers.

KDnuggets News, a data mining and knowledge discovery newsletter, polled more than 600 of its readers, to find out which data mining tool they regularly used. The #1 response was SPSS Inc.'s Clementine data mining workbench, for the 4th year in a row.

SPSS Inc. was ranked first in the Intelligent Enterprise “2004 Companies to Watch.” These awards highlight companies that provide the strongest vision, market leadership and technology innovation.

Key TakeawaysKey Takeaways

Companies of all sizes can profit

Various types of users are performing data

mining

Performing data mining is within reach

Proven tools are available to take you from

data discovery to action!

Getting started with Data MiningGetting started with Data Mining

Begin with the end in mind

Limit the scope of your initial project

Define an executable data mining strategy

Attendees will receive a free copy of

“Planning Successful Data Mining Projects.”

Question and AnswerQuestion and Answer

For More InformationFor More Information

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