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Copyright © 2006, SAS Institute Inc. All rights reserved.
SAS Customer Intelligence The state of analytics in Canada
Consider Customer Value Management with Customer Intelligence platform
Our Journey TodayOur Journey Today
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ObservationsObservations
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Experiential Champion (Mature Capability)
Experiential Master (Optimized)
Customer experience is a primary source of competitive advantage. Continuous customer learning & improvement is automated & optimized.
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Product Hostage (No capability):
Organizations are not taking action and have no capabilities to do so. Primarily product-driven.
Customer Enthusiast (Limited capability):
Early signs of customer centricity are surfacing. Connecting customer data across a few products and touch-points
Customer Activist (Developed capability):
Customer data is linked across all products & touch-points. Customer insights are beginning to impart customer knowledge.
Experiential Champion (Mature Capability)
Enterprise customer-centric strategy well-established. Customer insights are robust & predictive.
54%52%
Canada Respondents Global Benchmark Respondents
Maturity ContinuumMaturity Continuum
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Product Hostage
Customer Enthusiast
Customer Activist
Experiential Champion
Experiential Master
2%
24%20%
0%1%
22% 23%
3%
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Canada vs. Global BenchmarkCanada vs. Global Benchmark
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Insight Insight
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InsightInsight % Good / Excellent
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InteractInteract
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InteractionInteraction % Good / Excellent
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Improve Improve
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ImproveImprove
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% Good / Excellent
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Business Processes Enabling Technology
Understand Business Process Understand Business Process –– Then Enable Technology Then Enable Technology
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Leverage technology……around the customer!
Focus Remains UnchangedFocus Remains Unchanged
� On behalf of your shareholders, how do you develop:• your brand, • your channel strategies, • your product and service portfolio
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� In order to attract and retain those customers whom you are best equipped and skilled to generate value from?
� And how do you enable (enforce) your strategies through your customer facing representatives?
CEO CEO ConcernsConcernsRemains Remains Unchanged Unchanged
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Awareness Differs from Practice Awareness Differs from Practice
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Customer Value ManagementCustomer Value Management
CustomerCustomer
• Plan and build the data repository around customers and households
• Foundation of CVM
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ValueValue
• Measure value• Profitability now and
forecast lifetime value
ManageManage
• Proactively manage and target marketing and sales initiatives
• To optimise business value from strategic segments
SAS For Customer Value ManagementSAS For Customer Value Management
Plan & Build CustomerData Repository
Measure Customer Value
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Customer ValueManagement
Manage CustomerValue
Customer SegmentationManagement
SAS For Customer Value ManagementSAS For Customer Value Management
Plan & Build CustomerData Repository
Measure Customer Value
Name & Address Hygiene
Customer De-duplication
Householding & Inter-customer Relationships
Transactional Data Repository
Organisational Cost Data Repository
Current Customer Profitability
Customer Life Time Value
Activity Based Costing
Predictive Analytics & Forecasting
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Customer ValueManagement
Manage CustomerValue
Customer SegmentationManagement
Repository
ETL Process AutomationAcquisition Cost Evaluation
Value Based Segmentation
Geodemographic / Lifestage
Attitudinal / Behavioural
Segment Volume and Migration Analysis
Scorecarding and KPI Reporting
Outbound Marketing Automation
Inbound Decision Management
Price & Offer Optimisation
Acquisition, development and retention
programs
Product & Channel Management
How SAS How SAS Enables CVM Enables CVM
� SAS Customer Intelligence• Analytics platform • Define – Deliver – Distribute
� Technical and business process for ALL core
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� Technical and business process for ALL core aspects of CVM
� Supplementary solutions that enhance the CVM capabilities even further
� Specific methodologies and best practices built into the Business Intelligence solutions that help deliver CVM in practice
Examples of CVM at Work TodayExamples of CVM at Work Today� Marketing Optimization
• Scotiabank• Qwest• CommerceBank• CBA• Vodafone• Aegon
� Online Web • 1-800-FLOWERs• Octupus Cards• HSBC• Government Agency – UK
• Analytics
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• Aegon
� Marketing Campaigns/Campaign Management
• Northern Tool• Pao de Acurar• ING Direct• SaskTel• Swinton• Staples• US Bank• Santander Bank
• Analytics• Harrahs Hotel & Casinos• Hard Rock Hotel Inc• Sainsbury• Tesco (Dunhumby)• Hjemmet Mortensen
Around the Corner Around the Corner � Social Network Analysis
• Using networks analysis to determine relationships of your customers− Use current internal data− How is their value influenced within these networks− Who has most value (customer, network)
– how can you maintain and increase value
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– how can you maintain and increase value– Who has high CLV and influencer score?
� Sentiment Influence Analysis• What is the perception of your company within WWW? • How does that perception affect your company • How much does a positive/negative perception influence CV• Who has the loudest voice?• What events have little impact?• What events/decisions/voices drive CV?
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MOVING IN THE RIGHT DIRECTION REQUIRES…
-- Forrester Research* --
“..aligning the marketing organization around functional
disciplines the 4 P’s…will only grow less effective
in today’s multi-channel world
33--I Solution: I Solution: a business process to manage the…a business process to manage the…� Multi-Channel Customer Experience
� 4 P’s = Tactical Product
Price
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in today’s multi-channel world
where consumers demand
the highest level of experiences
as a price for their brand loyalty.
Instead, companies need to migrate toward a
Customer-Centric Marketing Organization…”
-- Peter Kim --
*Peter Kim, “Reinventing The Marketing Organization: Customer Groups Should Trump Channels, Products, Or Geography,” Forrester, July 2006.
Place
Promotion
� 3 I’s = StrategicInsight
Interaction
Improve
Start
Deepen CustomerDeepen Customer InsightInsight
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� Integrate Data• Products & channels
• Credit scores & 3rd party
� Predict Behavior• Purchase & attrition • Profitability & potential
� Profile & Segment• Profit, potential, behavior & life stage
Hot Areas…
� Web behavior• On-line + off-line data � agency / branch
action
� Social Networks• Measuring the value of “influencers”
Choreograph CustomerChoreograph Customer ��������������������
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� Optimize Strategies• Strategy maps• Campaign optimization
� Engage Customers• In/out-bound campaigns • Behavior-triggers
� Multi-Channel• Electronic: mobile SMS, web, aggregators• People: agencies & call-centers
Hot Areas…
� Optimizing• Multi-channel / multi-product
� Real-time decisioning for..
• Agents• Web / aggregators• Call-centers
Continuously � ���� Performance
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� Manage & Report• Scorecards & web reports • KPIs to align employees
� Optimize Mkt. Investment• Mkt. mix: ad / promo %• Media mix by market
� Learn & Improve• Closed-loop continuous learning
Hot Areas…
� Learning from customers• Differentiating on “experience”• Source of competitive advantage
� Empowering customers• Dynamic-relationship pricing DRP
“Go Crazy” or Do Something Different“Go Crazy” or Do Something Different� Seek external and internal partnerships
• that enable you to demonstrate the value and delivery
� Consider project to demonstrate value of CVM• Measure impact, ROI, business process efficiency/effectiveness
� Think Big – Start Small• Know the direction you can go - select measurable projects
� Start in small way to remove walls
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� Start in small way to remove walls• No more Marketing & Analytics –> Marketing Analytics• Stop generating analytical content when there is no consumer or measurement
� The need for a platform• Required for effective and efficient experience
� Place as much focus on translation as creation of analytical content
� The world has already changed!• Recognize the new opportunities & capabilities• Doing the same old things will drive you “crazy”
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Thank You