improve your marketing campaign roi with predictive …...improve your marketing campaign roi with...
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Improve Your Marketing Campaign ROI with Predictive Analytics
Rajesh Shewani, Pre-Sales Leader – India/SAIBM Business Analytics – Cognos & SPSS
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Our world is becoming
INSTRUMENTEDOur world is becoming
INTERCONNECTED
Our world is becoming
INSTRUMENTEDOur world is becoming
INTERCONNECTEDVirtually all things, processesand ways of working are becoming
INTELLIGENT
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Transform Your Organizationwith Information
Inefficient Access1 in 2 don’t have access tothe information across their organization needed to do their jobs
Lack of Insight1 in 3 managers frequently make critical decisions without the information they need
Inability to Predict3 in 4 business leaders say more predictive information would drive better decisions
Variety of Information
Volume of Digital Data
Velocity of Decision Making
Source: IBM Institute for Business Value
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IBM is uniquely equipped for Business Optimization
• In addition to driving continued innovation across SPSS’s predictive analytics portfolio, we plan to leverage its strengths across many aspects of the broader IBM portfolio, increasing customer value
• We will be expanding expertise and capabilities for IBM’s new Business Analytics and Optimization (BAO) service line
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New ways of working to optimize decisions and actions
Lack of Insight
Inability to Predict
Inefficient Access
Variety
Volume
Velocity Sense and respond
Instinct and intuition
Automated
Skilled analytics experts
Back office
Predict and act
Real-time, fact-driven
Optimized
Everyone
Point of impact
New ways of working to optimize decisions and actions
Lack of Insight
Inability to Predict
Inefficient Access
Variety
Volume
Velocity Sense and respond
Instinct and intuition
Automated
Skilled analytics experts
Back office
Predict and act
Real-time, fact-driven
Optimized
Everyone
Point of impact
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Imagine If Your Decision Makers Could…
Physician Telco Call Center RepLoan Officer Retail Sales
Associate
…predict and treat infection in premature
newborns 24 hours earlier?
…apply inferred social relationships of
customers to prevent churn?
…adjust credit lines as transactions are
occurring to account for risk fluctuations?
…determine who is most likely to buy if offered discounts at
time of sale?
…optimize every transaction, process and decision at the point of impact, based on the current situation, without requiring
that everyone be an analytical expert
How can I capture and analyze information about how my
customers, prospects or employees are feeling?
How can I capture and analyze information about how my
customers, prospects or employees are feeling?
How can I predict behaviors and preferences so I can reduce churn, prevent fraud, maximize campaign
results and more?
How can I predict behaviors and preferences so I can reduce churn, prevent fraud, maximize campaign
results and more?
How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?
How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?
Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage
Analyses patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes
Predictive Analytics offers Unique Insights to Answer those Tough Business Questions
Introducing SPSS, an IBM Company
• A leading provider of predictive analytic software, services and solutions– Software – data collection, text and data mining, advanced statistical
analysis and deployment technologies– Services – implementation, training, consulting, and customization – Solutions – combine software and services to deliver high-value line-of-
business solutions; used for optimizing marketing campaigns, call center effectiveness, identification of fraudulent activity and more
• 40 years of experience and a broad customer base– 250,000 customers: 100 countries, 50 states, 100% of top universities
Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes
Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes
Enabling the Predictive Analytics Process
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Capture Predict Act
…
…
DataCollection
DeploymentTechnologiesPlatform
Pre-built Content
Statistics
Attract Up-sell Retain
TextMining
DataMining
Data Collection delivers an accurate view of customer
attitudes and opinions
Predictive capabilities bring repeatability to ongoing decision making, and drive
confidence in your results and decisions
Unique deployment technologies and methodologies maximize the impact of
analytics in your operation
Applying SPSS Portfolio to Accelerate Your SuccessExample: Customer Intimacy
Reduces customer defection, increases uplift from cross-sell/up-sell targeting, and improves acquisition of the “right” customers, by enabling decision makers to:
• Understand unstructured data that is found in everything from e-mails, call center notes, blogs, and open ended survey questions
• Identify drivers of customer behavior via survey analysis• Identify key performance predictors (KPPs) including customer
defection and outcome of particular customer interactions• Prioritize customer programs as part of real-time decision processes • View customer insights alongside key performance information
through standard IBM reports, analyses and dashboards
Success Stories: Customer Intimacy
Grow and Retain
“The power and ease of use of PASW Statistics enables the AMR Consumer Research department to perform more research than ever before and deliver timely reports while maintaining a small, dedicated staff.”
Grow“With SPSS, HSBC Bank USA effectively mines an
ever-growing file of customer data, creating predictive models to uncover cross-selling and “roll over” sales opportunities.”
Attract, Grow and Retain“SPSS solutions add intelligence to our business
ensuring efficiencies in pricing, marketing and reporting – something no company can afford to ignore in today’s business environment”
Business Scenario
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Business scenario for Banking Campaign Insight and Optimization
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Customer ContactsPlenty of
customers to contact, but what would be the best
offer (if any) for each one?
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Customer ContactsPlenty of
customers to contact, but what would be the best
offer (if any) for each one?
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
Customer ContactsPlenty of
customers to contact, but what would be the best
offer (if any) for each one?
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer ContactsPlenty of
customers to contact, but what would be the best
offer (if any) for each one?
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Business Scenario: Cross-selling in Retail Banking
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Predictive Modeling
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
DecisionOptimization
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Integration with operational processes and systems
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Key Performance Predictors and Campaign Results
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Analysis, reporting and KPPs
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Key Performance Predictors and Campaign Results
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Predictive ModelsLikelihood to respond to each of the current marketing offers
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Analytical Asset & Process
Management
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
© SPSS 2009© SPSS 2009
Grow customer value
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
“Market”
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009
Capture Predict Act
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Campaign Data- Contact history- Response/purchases- Test campaigns- …
© SPSS 2009
AnalysesPredict who is likely to
respond, based on their customer profile
when receiving the campaign
Capture Predict Act
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Campaign Data- Contact history- Response/purchases- Test campaigns- …
© SPSS 2009
Scoring
Marketing campaign process
AnalysesPredict who is likely to
respond, based on their customer profile
when receiving the campaign
Capture Predict Act
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Campaign Data- Contact history- Response/purchases- Test campaigns- …
© SPSS 2009
Key Performance Predictors and
Campaign Results
AnalysesPredict who is likely to
respond, based on their customer profile
when receiving the campaign
Scoring
Marketing campaign process
Capture Predict Act
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Campaign Data- Contact history- Response/purchases- Test campaigns- …
© SPSS 2009
Capture Predict Act
Key Performance Predictors and
Campaign Results
Marketing campaign process
AnalysesPredict who is likely to
respond, based on their customer profile
when receiving the campaign
Campaign Data- Contact history- Response/purchases- Test campaigns- …
ScoringCustomer Data
- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
© SPSS 2009© SPSS 2009
Descriptive
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Behavior
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Interaction
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 3
Key Performance Predictors and Campaign Results
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
12435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
© SPSS 2009© SPSS 2009
Customer ContactsOffer of the month
sent to all customers
Before predictive analytics:“Offer of the month”sent to all customers
© SPSS 2009© SPSS 2009
Customer Data- Demographics- Account Activity- Product Holdings
Predictive ModelLikelihood to respond to offer of the month
Customer ContactsOffer of the month
sent to all customers
Step 1:Optimize offer of the month by not contacting customers
not likely to respond
© SPSS 2009© SPSS 2009
Step 2:Establish feedback loop to
measure the effect of subsequent improvements
Customer Data- Demographics- Account Activity- Product Holdings
Predictive ModelLikelihood to respond to offer of the month
Key Performance Predictors and Campaign Results
Customer ContactsOffer of the month
sent to all customers
© SPSS 2009© SPSS 2009
Step 3:Enrich the data
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelLikelihood to respond to offer of the month
Key Performance Predictors and Campaign Results
Customer ContactsOffer of the month
sent to all customers
© SPSS 2009© SPSS 2009
Key Performance Predictors and Campaign Results
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Step 4:Optimize across multiple offers
© SPSS 2009© SPSS 2009
Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
Key Performance Predictors and Campaign Results
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Step 5:Automate processes
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
© SPSS 2009© SPSS 2009
Customer ContactsMarketing offers are personalized
based on Best Next Actions and mailed
to customers
Next Best ActionBest 3 offers recorded for every customer individually
Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera
Automated UpdatesTo accommodate new offers and to apply customer contact rules
Future Steps:
• Roll out to other touch points• Customer Service Center• MyBanking website• ATM• Mobile banking
• Add retention offers
• Optimize across customers, offers, channels and time
• Introduce feedback strategies to uncover unmet needs for new product development
• Take risk predictions into account when making marketing offers Customer Data
- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …
Predictive ModelsLikelihood to respond to each of the current marketing offers
Key Performance Predictors and Campaign Results
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Customers Experience a Measurable ROI
• 94% of customers achieved a positive ROI, average payback in 10.7 months
• Over 90% of users attributed an increase in productivity to SPSS
• 81% of projects were deployed on time, 75% on or under budget
“This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports”
Rebecca Wettemann, VP of Research, Nucleus Research
SPSS, an IBM Company Enables Next-Generation Decision Making
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• A leading provider of predictive analytic software, services and solutions with 40 years of experience and a broad customer base
• Enables decision makers across the organization to predict future events and proactively act upon that insight to drive better business outcomes
From sense and respondFrom sense and respond…………to predict and act!to predict and act!
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