Closing the Gap Between the Customer and the Profitable Customer with Analytics

Paul Ross, VP of Industry and Product Marketing – Alteryx

Greg Bucko, Manager of Customer Insights – Southern States Cooperative

Customer Analytics Are the Start of The Key Strategic Decisions In Retail

Customer Marketing

InsightHyper Local

Merchandizing

Faster Site Selection

Traditional Customer Analytics Model Has Been Disrupted

Awareness & Influence

Decision Making

PurchaseUse & Maintenance

Data Sources

Outbound Inbound

AdvertisingPR

PromotionSocial

…

SocialContentLoyalty

SEO…

Data Sources

Traditional New

CampaignSurvey

Compete…

SocialSEO

Clickstream…

Data Sources

Traditional New

PromotionPOS

Location…

Golden PathClick stream

Cart…

Data Sources

Traditional New

CRMServicesSurvey

…

SocialForumsUsage

…

Traditional Customer Analytics Model Is Just Wrong

Awareness & Influence

Decision Making

Purchase

Use & Maintenance

Big Data is Great But Context is King

Cloud Data

“I just want to understand what we should be doing…”

Solution Equation for the 360 Degree Customer Project

Large IT Data Project

Multiple Tools A Lot of Time

Fail

Who is solving the problem without a long IT project?

How Are They Solving this Challenge?

Data Artisan

Capabilities of Data Scientist that Drive Largest Value Today

Marketing or Customer Analyst

Utilize & Integrate any data source

Integrate

Rapid design of predictive analytics with unique spatial

understanding

Analyze

App &

Data

All Relevant Data

Enrich

Packaged Market & Customer Data

Consumerize the use of

sophisticated analytics

Southern States – Who We Are

12

Founded in 1923, ~$2 B in annual revenues from retail and wholesale operations

Primary customers are farmers and rural Americans

Provide products and services essential to raising crops and livestock as well as farm supplies, home heating, lawn, and garden care

Multiple-channel distribution network with 1,234 storefronts across 23 states

Experience

Attitudes & Beliefs

Sales History

COMPLETE CUST

OMER

CHALLENGE: Understand the drivers of PROFITABLE

Loyalty and recommend strategies to increase PROFITABLE Loyalty

Survey Data Survey Data Transactional Data

Step 1: Paint The Complete Customer Picture

Driving Profitable Loyalty

LOYALTY

Preference

ProfitabilityPromotion

Step 2: Define and Measure Loyalty for Southern States

Loyalty is measured by customer segment along a spectrum

Not one but several metrics are combined

Like the legs of a stool, if one is missing Loyalty collapses

LOYALTY3-D

Driving Profitable Loyalty

Step 3: Explore the Data and Identify the Drivers of Loyalty

Combine, cleanse, explore, and analyze the data using Alteryx

Combine transactional data with survey responses

Cleanse data and calculate basic descriptive statistics

BASIC

EXPLORATORY

PREDICTIVE

Look for relationships (Association Analysis)

Reduce variables / create consts. (Principal Components)

Find unique segments (K-Means Clustering)

Identify the Drivers of Loyalty and Quantify the FinancialImpact of Improved Loyalty (Linear Regression)

Driving Profitable Loyalty

Step 4: Turn the Drivers of Loyalty Into Strategic Imperatives

Critical Improvement Opportunities

Promote, Expand, & Maintain

Negative Drivers

Positive Drivers

Out of dozens of potential drivers, only a handful will rise to the top

This exercise helps focus the corporate strategy on what is MOST IMPORTANT!

Driving Profitable Loyalty

Connecting and Cleansing the Data

Running Basic Cross-tabs and Other

Calculations

Using Predictive Macros to Identify Drivers and

Quantify Impact

Exploring the Data

Step 5:

MEASURE! MEASURE! MEASURE!

Driving Profitable Loyalty

Next Steps

Ask Greg How He Does What

He DoesGet a Demo at

Booth C242

Visit http://

gallery.alteryx.com

• Big Data• Big Data Analytics• Big Data Analysis• Humanizing Big Data• Strategic Analytics• Predictive Analytics• Data Scientist• Data Artisan• Data Analyst• Big Data Gap• Unstructured data• Analytics Platform• Unstructured Data

• Alteryx• Paul Ross• Greg Bucko• Southern States Cooperative• Customer Loyalty• Retail Analytics• Alteryx Analytics Gallery

Key Terms