Applications of innovative analytics in business

© AbsolutData 2013 Proprietary & Confidential

APPLICATIONS OF

INNOVATIVE ANALYTICS IN

BUSINESSGuiding CXOs to deal with an increasingly complex

customer environment

© AbsolutData 2013 Proprietary & Confidential 2

Agenda

• Context

• Innovation Framework -

SATIN

• Case Examples


Marketers are challenged to understand Individual Customers

• Changing demographics

• Digital technologies

• Empowered customers

• Intense competition

• Online & offline relationships

CMO C-Suite Studies, IBM


CMOs are looking for Answers to Critical Business Questions

How much growth can we expect

from each of our brands and channels?

How will we achieve our 3 year

growth plan?

How much impact does customer

satisfaction have on revenue?

What’s the ROI on our marketing investments?

How do we drive growth through

targeted customer centric actions?


Predictive Analytics needs to deliver Actionable Insights that help Drive Revenue

Revenue

HR

BD

Technology

Marketing

Sales

OPS

BUSINESS

Complex Revenue Drivers

IT

Data Integration, access, visualization

Generating Insights that can Drive Top

Line Growth

PREDICTIVE ANALYTICS

Decision Support

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Agenda

• Context


SATIN

• Case Examples


IMPACTTECHNOLOGY

Innovation Framework - SATIN

APPLICATIONSTRATEGY

NEW DATA


Agenda

• Context


SATIN

• Case Examples


SATIN Case 1: Portfolio Strategy in Beverages

IMPACT

• 10 Regions

Completed

• 12 in Pipeline

TECHNOLOGY –

• SPSS, MarketSight

• CHAID, MNL,

Perceptual Maps

NEW DATA – Trade Audit, U&A, Financial Data & Behavioral Research

Identified ways to leverage growth trends in premium market

Found ways to grow value without igniting industry rivalry Identified opportunities to grow in

multiple price segments through innovative packaging strategies

Found next wave of growth in a slowing market

Enhanced share of value in a mature, sophisticated market

Identified latent high potential segments

APPLICATION

• Segmentation

• Line of sight

• Retailer Value

Proposition

STRATEGY

Optimize portfolio in

each region to meet 3

Year Revenue Goals

Consumers Shoppers Retailers

Urb

an

(84

.6%

)

A/B (24.9%)

C (43.0%)

High Aspiration

(15.0%)

Medium Aspiration

(14.3%)

Low Aspiration (13.7%)

D/E (16.7%)

Rural (15.4%)

5.1%

4.0%

7.1%

4.7% 3.7%

5.5% 2.3%

3.3%

4.4%

5.3%

6.6% 7.5%

4.3%

4.5%

5.6%

4.7%

4.1%

5.8%

6.5%

1 7

9

16 18 20 12 2 317

8 11 19

13 15

4

14

Events(5.1%)

Dancing Center(3.6%)

Bar1

(10.5%)

Rest-aurant2

(10.1%)

Bodega3

(47.1%)

LiquorShop

(6.1%)

Private(6.4%)

Super-market /

Conv. Store(4.0%)

Whole-saler4

(7.1%)Large(6.8%)

Small(3.8%)

On premise5

(Beer revenues)(27.8%)

Off premise5

(Beer revenues)(19.3%)

Small(15.8%)

Large(12.0%)

Large(8.9%)

Small(10.4%)

10

5.1%5 6


SATIN Case 2: Guest Satisfaction in Hospitality

APPLICATION

Explain over 90% of

variation in guest

satisfaction

STRATEGY

Manage guest

satisfaction to de-risk

market share

IMPACT

• Business decisions

informed from C-

Suite to Property

TECHNOLOGY –

• SQL, SAS, SPSS,

Latent Gold, VBA

• Segmented Models

NEW DATA – CRM Transactions and Loyalty data, Consumer Research and STR Data


SATIN Case 2: Marketing Mix Optimization in the Digital World

APPLICATION

Revenue Attribution

What if analysis

STRATEGY

Optimize on-line and

off-line marketing

IMPACT

• Brand vs. Portfolio

• Media ROI

• Discount Reduction

TECHNOLOGY –

• SPSS, VBA, JAVA

• MMM, Discrete

Choice Attribution

NEW DATA – Revenue, Spend across Channels, Price, Promotion & Distribution + Competition, Demand Drivers & Macro Economic Data

© AbsolutData 2013 Proprietary & Confidential

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