hpmc 2014 - the value of analytics - sas
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Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
THE VALUE OF ANALYTICS
IN THE WORLD OF THE DIGISUMER HPMC 2014
PETER WOODS
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
AGENDA THE VALUE OF ANALYTICS
• The business purpose of analytics
• The conditions to guarantee success
• How new technologies support analytics
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
THE CUSTOMER
IS A CAT!
THE NEW CUSTOMER IS MORE DEMANDING AND LESS LOYAL
The Customer is a cat.
To conquer the heart of this new Customer type is one of the big challenges.
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
THE NEW CUSTOMER ALL DOGS ARE CHASING THE SAME CAT!
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Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
YOUR
COMPETITIVE
ADVANTAGE
Orient
Observe
Act
Act
Orient
Decide MARKET
OPPORTUNITY
Decide
WHY DO WE CARE?
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WHAT ENABLES
THIS MAGIC? IT‘S PREDICTIVE ANALYTICS LOOKING INTO THE FUTURE
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
WHERE IS
ANALYTICS OF
VALUE?
AS A GAME-CHANGER
Intelligence-driven Business Differentiation
Increasing process effectiveness and
customer relevance
Campaign Management Optimization
Intelligence-driven Business Innovation
Innovating existing business model with new
revenue streams
Cross-sell to new business lines
Intelligence-driven Business Transformation
Transforming the business entering in brand new
markets
Creation of a new company
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
WHAT A GREAT
IDEA!
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
SCIENCE ART
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
MARKETERS TODAY ARE DATA-DRIVEN
Sources: Work·Play·Experience I Forrester Blog--Kerry Bodine, April 2, 2014 | SAS
Rational needs Information,
Transaction, Service
Emotional needs Belonging, Identity, Aspiration,
Performance, Knowledge Unstructured
Structured
Semi-
structured
Customer
Experience
#SASCI
SCIENCE
ART
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
• Self-service
• Easy to use Analytics
• Work with more data
• Reporting and Dashboards
• Mobile BI
• Collaboration
Forecasting Scenario analysis
Dynamic time-lap analysis
Decision tree analysis
MARKETING CREATES UNDERSTANDING
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PICTURES MEET NUMBERS
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IDENTIFY /
FORMULATE
PROBLEM
DATA
PREPARATION
DATA
EXPLORATION
TRANSFORM
& SELECT
BUILD
MODEL
VALIDATE
MODEL
DEPLOY
MODEL
EVALUATE /
MONITOR
RESULTS Domain Expert
Makes Decisions
Evaluates Processes and ROI
BUSINESS
MANAGER
Model Validation
Model Deployment
Model Monitoring
Data Preparation
IT SYSTEMS /
MANAGEMENT
Data Exploration
Data Visualization
Report Creation
BUSINESS
ANALYST
Story Telling
Exploratory Analysis
Descriptive Segmentation
Predictive Modeling
DATA SCIENTIST /
DATA MINER /
STATISTICIAN
YES, I WANT
ANALYTICS IT IS STRAIGHT FORWARD!
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
THE MARKETER CAN BUILD THE CUSTOMER PROFILE
Anonymous
Time
Account E-Mail Social
Previous
browsing
activity
Ability to look
back
Browsing
Behavior
Clustering
Product linking
(nearness)
Customer
Knowledge
Cu
sto
mer
Valu
e
Behavior
Buying Behavior
Segmentation
More effective
targeting
Frequency of visits
Engagement Level
Customer Behavior
Customer Value (RFM)
Predictive Insight
(Churn/Opportunity)
Lifecycle and Lifestyle
marketing
Customer as
partner/promoter
123
Cookie Sessions E-mail User ID Online
Segment Geo
1 2 … n [email protected] PW45361 01 Browser
Customer
Segment
DedicatedFan
Big Data
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VOLUME
VARIETY
VELOCITY
VALUE
TODAY THE FUTURE
DA
TA
SIZ
E
THRIVING IN THE BIG DATA ERA
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PREPARE
DATA
EXPLORE MODEL
DEPLOY
Operationalize
Real-time
In-database
….
No. of Iterations
Complex Models
Retraining
Ensembles
….
All Data
Number of Variables
New Events
Unstructured Data
…..
Fast
Interactive
Visual
Analytical
….
CUSTOMER
ANALYTICS
WHAT IS THE IMPACT FROM BIG DATA ON CUSTOMER ANALYTICS?
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BIG DATA ANALYTICS?!
Analytics
High-Performance Analytics
Value
creation
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
IDENTIFY /
FORMULATE
PROBLEM
DATA
PREPARATION
DATA
EXPLORATION
TRANSFORM
& SELECT
BUILD
MODEL
VALIDATE
MODEL
DEPLOY
MODEL
EVALUATE /
MONITOR
RESULTS
THE ANALYTICS
LIFECYCLE MOVE THE ANALYTICS TO THE (BIG) DATA
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
BIG DATA
ANALYTICS INTEGRATED USER EXPERIENCE
Data
Preparation
Exploration/
Visualization
Modeling Deployment
DATA SCIENTIST /PROGRAMMER
Visual
Analytics
Visual
Statistics
GUI GUI
BUSINESS ANALYST
STATISTICIAN
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
LAST PIECE OF THE
PUZZLE: DATA QUALITY “DATA DELAYED IS DATA DENIED”
“…poor data quality costs U.S. businesses
$600 billion annually”
Market
value
Pumped into the
U.S. economy
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
Predictive Modeling Process
Low predictive effectiveness
High predictive effectiveness
DATA QUALITY
IMPACT:
MANAGED DATA
Limited and
poor Data
Exhaustive and
documented
information
Model lift
“low-average”
Model lift
“good-high”
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
MANAGED ANALYTICAL DATA
1. Access the data
from multiple
systems:
- Integrate
- Enrich
- Describe
2. Cleanse data
- Analyse
- Inform
- Improve
Growth path:
Data governance, Master data management
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
BIG DATA ANALYTICS
Data
Preparation
Exploration/
Visualization Modeling Deployment
DATA SCIENTIST /PROGRAMMER
Visual
Analytics
Visual
Statistics
GUI GUI
BUSINESS ANALYST
STATISTICIAN
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
BIG DATA ANALYTICS
Data
Preparation
Exploration/
Visualization Modeling Deployment
DATA SCIENTIST /PROGRAMMER
Visual
Analytics
Visual
Statistics
GUI GUI
BUSINESS ANALYST
STATISTICIAN
In-database
processing
Quality
Analytics
Scoring
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
SO WHERE DO WE
STAND READY YOURSELF TO CREATE VALUE
The business purpose of analytics >>>
• Analytics to go beyond borders
The conditions to guarantee success >>>
• Managed data
How new technologies support analytics >>>
• Enabled on Hadoop, Cloud, real-time platforms
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
FUTURE VALUE OF ANALYTICS
According to experts:
- We are not able to crash a car anymore or
burn diner
- BUT Most importantly:
All customer communication is personal!!
Copyr i g ht © 2014, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
MORE
INFORMATION
Download the whitepaper:
Four Tips to Mastering Multichannel Digital Marketing Attribution
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THANK YOU
NL.LINKEDIN.COM/IN/PETERWOODS/
SELECTED MATERIALS COURTESY OF BRIAN VELLMURE
BRIANVELLMURE.COM