Journey from knowledge to

action

Presented by: Zienab Allam

Agenda

Introduction to SAS.

Customer Success Stories.

Industries.

Products & Solutions.

Use-case.

Demo.

Introduction to SAS

Introduction to SAS

SAS was founded in 1976 to help all sorts of customers.

SAS delivers proven solutions that drive innovation and improve performance.

Company Facts & Financials

Customer

Number of Countries InstalledSAS has customers in 134 countries.

Total Worldwide Customer SitesMore than 70,000 business, government and university sites.

SAS Customers or their Affiliates Represent:91 of the top 100 companies on the 2013 FORTUNE Global 500® list

Company Facts & Financials (Cont.)

Employee

Worldwide Employees13,719 total employees

Breakdown by GeographyUnited States: 6,862

World Headquarters (Cary, NC): 5,231

Canada: 317

Latin America: 468

Europe, Middle East and Africa: 3,845

Asia Pacific: 2,227

Financial

Worldwide Revenue2013 Revenue: US$3.02 billion

Reinvestment in R&D2013 R&D investment: 25% of revenue

Company Facts & Financials (Cont.)

Reference Customers & Partners

Gartner Report

Magic Quadrant for Business Intelligence

and Analytics Platforms.

Customer Success Stories

Customer Success Story

Staples

Customer Success Story (Cont.)

Bringing science to customer relationship.

HP turns 2.5 billion customer transactions into customer intimacy

"We're very pleased to have a fantastic relationship with SAS. We feel we're not

only a customer – we are ultimately a partner."

Customer Success Story (Cont.)

With SAS, we're accurately scoring more than 100

million customers in seconds to target our marketing

and service efforts.

Prasanna Dhore

Vice President, Global

Customer Intelligence

Customer Success Story (Cont.)

Solutions

SAS® Enterprise Miner™

SAS® Text Miner

Benefits

20 percent incremental ROI across campaigns.

Orders shipped have increased by 50 percent in three years.

Overall operating profit of the HPDirect.com store has increased by more than 50 percent.

Industries

Industries

Automotive BankingDefense &

Security Government Hotels

Insurance Oil & Gas Retail Sports Manufacturing

HealthInsurance

Media Communicatio

nsUtilities

Travel & Transportation

Industries (Cont.)

Consumer Goods

Casinos Capital Markets K-12 EducationSmall & Midsize

Business

Life Sciences Health Care Providers

Higher Education

High Tech

Retail

Retail has always been a data-intensive industry.

As the tools available to store, manage and analyze this data evolved, so did the role the

analysis of data played in retail decision-making.

From visibility and control, to transparency, to efficiency, to customer engagement.

Retail(Cont.)

how well are they able to leverage insights from this analysis to drive strategic decisions?

Retail(Cont.)

Retailers’ analytics maturity is low.

Data management and integration.

Usability is the most important feature.

Retail(Cont.)

Retail

Right Customer

Right Time

Right Channel

Right Place

Retail(Cont.)

Gain a deeper understanding of their customers’ behaviors, needs and preferences.

Improve marketing effectiveness through micro-targeting, personalization and delivery of

context and channel sensitive promotions and offers that increase the likelihood of

purchase.

Optimize the supply chain.

Determine pricing, including bundle and basket pricing, based on the value customers.

Solutions

SAS® Retail Forecasting

SAS® Retail Analytics

Retail(Cont.)

Products & Solutions

SAS Enterprise Miner

Benefits

Produce insights that drive better decision making.

Understand key relationships and find the patterns that matter most.

Build better models with the best tools.

Empower business users.

Improve the accuracy of your predictions, and share reliable results.

Ease the model deployment and scoring process for faster results.

SAS Enterprise Miner (Cont.)

Features

Easy-to-use GUI and batch processing.

Fast, easy and self-sufficient way for business users to generate models.

Data preparation, summarization and exploration.

Open source integration with R.

High performance capabilities.

Automated scoring.

Model comparisons, reporting and management.

Use-case

Introduction

o Relationship between companies and customers changed significantly.

o It became more difficult to attract new customers.

o Companies wishing to be at the leading edge have to continually improve the service levels.

Introduction(Cont.)

Business Problem

Solution Outlines

Loyalty Program

Loyalty Program(Cont.)

Segmentation Models

The company customers are segmented in two ways:

Grouping customers based on their shopping habits.

Segmentation is based on customer necessities and preferences.

Solution Methodology

Inference of the lifestyle corresponding to each cluster of products.

Analyzing the type of products included in each cluster.

Analyzing the business unit, the category and the position of the product brand concerning the value.

Assigning each customer to a specified segment (or cluster).

Solution Methodology(Cont.)

By using VARCLUS algorithm, integrated in SAS software, to cluster the products.

Based on a divisive algorithm.

Results & Output

Cluster #Products %Products

1 367 20.0

2 224 12.2

3 93 5.1

4 226 12.3

5 501 27.4

6 420 23.0

Total 1831 100

Results & Output (Cont.)

Cluster 1

Medium purchasing power.

Focused on practical meal solutions.

Preferring to buy takeaway food.

The potential buyers of these products have babies.

Appreciate wine.

Cluster 2

Medium purchasing power.

Follow a balanced diet.

The potential buyers of these products seem to enjoy socializing.

Champagnes purchased.

Results & Output (Cont.)

Cluster 3

Medium purchasing power.

Appreciate meat.

Perfumes/cosmetics.

The potential buyers of these products seem to enjoy socializing.

Spirit drinks and appetizers bought.

Cluster 4

Low purchasing power.

Appreciate premium brands.

Prepare dishes with basic ingredients.

Results & Output (Cont.)

Cluster 5

High purchasing power and with babies.

Prefer frozen products.

Like chicken barbecue and wine.

Interested in health, hygiene and cosmetic products.

Cluster 6

High economic power and may have babies.

Appreciate practical meal solutions.

Like cod-fish meals.

Results & Output(Cont.)

Proportion of products in each business unit

Results & Output(Cont.)

Proportion of products in the main category

Results & Output(Cont.)

Proportion of products of each brand position

Marketing Actions

Marketing segmentation enables:

Companies to enhance their relationship

with customers.

leading to higher sales.

Lifestyle segmentation enables an easy identification of the customers who may be interested in a given product.

A promotion is likely to be more successful if there is affinity between the product and the customer needs.

Distribution of customers by the clusters for specific stores.

Cluster 1

(%)

Cluster 2

(%)

Cluster 3

(%)

Cluster 4

(%)

Cluster 5

(%)

Cluster 6

(%)

Store1 21.2 32.9 13.8 19.8 4.9 7.4

Store2 21.8 23.9 10.2 33.3 3.9 6.5

Distribution of customers by the clusters.

Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6 Total

Customer 22.3 31.7 15.4 17.4 6.4 6.8 100

Marketing Actions(Cont.)

Conclusion

To increase Customer Loyalty:

Identify key customer segments.

Create target groups of similar segments.

Prospect for look-alikes in target markets and your own customer database.

Deliver differentiated messages and experiences.

Keep it simple.

Get everyone involved in the Consumer segmentation approach.

Measure the effectiveness and adjust your strategy.

Demo