Precision Marketing through Customer Intelligencebmap.net/wp-content/uploads/2014/06/Precision-Marketing... · 2015-04-24 · Precision Marketing Framework Supporting a common customer

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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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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%

http://money.cnn.com/magazines/fortune/bestcompanies/2008/full_list/index.html

http://www.kmworld.com/

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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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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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Precision Marketingthrough Customer Intelligence

Pamela Morales

Business Development Manager

Customer Intelligence

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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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10


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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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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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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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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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/Home

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inbound interaction



/Home

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$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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"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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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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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

http://images.google.com/imgres?imgurl=irm.state.nc.us/techarch/chaps/chap8-1.gif&imgrefurl=http://irm.state.nc.us/techarch/chaps/chap8.htm&h=303&w=368&prev=/images?q=data+warehouse&svnum=10&hl=en&lr=&ie=UTF-8&oe=UTF-8&sa=G

http://images.google.com/imgres?imgurl=www.virtualsoftware.com/dakotafit/protrack/graphs.jpg&imgrefurl=http://www.virtualsoftware.com/ProdPage.cfm?ProdID=2069&h=344&w=464&prev=/images?q=graphs&start=20&svnum=10&hl=en&lr=&ie=UTF-8&

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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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inbound interaction



/Home

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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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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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Activity Planning

Capacity Budget

Target KPIs

Time

Contact Rules

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1 Million Customers

> 10 Campaigns

Limitations?

It‟s

Complicated!


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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


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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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inbound interaction



/Home

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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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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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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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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


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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Community

Outlier

Marginal


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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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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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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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


Real Time Analytics

Social Network Analysis

Social Media Analytics

New

New

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by Robert Craven

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“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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Then, the Question is…

How do I make every interaction with them

Precise and Relevant ?

Copyright © 2010 SAS Institute Inc. All rights reserved.

Documents

Precision Marketing through Customer Intelligencebmap.net/wp-content/uploads/2014/06/Precision-Marketing... · 2015-04-24 · Precision Marketing Framework Supporting a common customer