lbi 4153 - from social insigts to business advantage - iod conf (ibm)

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Social Business Analytics – From Social Insights to Business Advantage

Session Number LBI-4153

Mark Heid | Program Director, Social Analytics | IBM

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Please noteIBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

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Agenda

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Social Analytics Overview

A Look at An Example• Benjamin's Grocery: Social Insights for Personalized

Marketing• Full “Click-Stream” Demo

The Social Analytics Solution – Nucleus of Interesting New Use Cases

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It’s time to bring science to the art of marketing

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A necessary combination in today’s rapidly evolving global marketplace

Science Marketing

the study of the physical and natural world, especially by using systematic observation and experiment

the study of the physical and natural world, especially by using systematic observation and experiment

the business activity of presenting products or services in such a way as to make them desirable

the business activity of presenting products or services in such a way as to make them desirable

Source Encarta World Dictionary

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Expanding marketing’s role, and contribution to the business

Agenda: Understand the market and the

customer Build awareness and demand Steward the company’s brand Drive brand strategy and

execution

Agenda: + Understand the customer in real time,

across the business+ Anticipate customer needs+ Drive consistent, compelling interactions

across all channels+ Steward the customer experience across

all touch points+ Monitor and harness customer evangelism+ Accountable for business outcomes and

return on investment

Traditional CMOTraditional CMO

Transformative CMOTransformative CMO++

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The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena

50%71%

68%

65%

63%

59%

57%

56%

56%

56%

55%

54%

50%

UnderpreparednessPercent of CMOs reporting underpreparedness

Data explosion

Social media

Growth of channel and device choices

Shifting consumer demographics

Financial constraints

Decreasing brand loyalty

Growth market opportunities

ROI accountability

Customer collaboration and influence

Privacy considerations

Regulatory considerations

Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important)

Global outsourcing

Corporate transparency 47%

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Customers are the New Intellectual Property

ProductLeadership

(Make the promise)

OperationalExcellence

(Deliver the promise)

CustomerIntimacy

(Keep the promise)

DecisionManagement

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Social Media Improves Traditional Predictive Analytics

Behavioral data- Orders- Transactions- Payment history- Usage history

Descriptive data- Attributes- Characteristics- Self-declared info- (Geo)demographics

Attitudinal data-Market Research-Social Media

Interaction data- E-Mail / chat transcripts- Call center notes - Web Click-streams- In person dialogues

Customer View

360 degree

“Traditional approach”

High-value, dynamic approach- source of competitive differentiation

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…..and more accurately answers “Why?”

Behavioral data- Orders- Transactions- Payment history- Usage history

Descriptive data- Attributes- Characteristics- Self-declared info- (Geo)demographics

Attitudinal data- Opinions- Preferences- Needs & Desires

Interaction data- E-Mail / chat transcripts- Call center notes - Web Click-streams- In person dialogues

“Traditional”

High-value, dynamic- source of competitive differentiation

Who?Who? What?What?

Why?Why?How?How?

Customer View

360 degree

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Monetizing Social Media

Optimize Cross Channel, Integrated

Campaigns

Marketing CampaignsPR Activities

Merchandising MixCategory Management

Sales

Retailer POSData

E-Commerce

Web Browsing

Contact Center

Social Media

Surveys, Focus groups

Map Aggregate Models to 1:1 User Profiles

Execute at the individual level by mapping aggregate insights to 1:1 social media profiles

Capture, Analyse & Model

Extract trends

Expose patterns

Discover relationships

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Looking ahead – The future must be intelligent marketing that understands the interrelations of all channels and media

Customer

Owned media

Earned media

Paid media

web site, microsites, blog, Facebook page, etc

display ads, PPC, sponsored content, etc.

what your customers share and say about you on social media

PR

Google

e

Ads

Google

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Agenda

12

3

Social Analytics Overview & Interesting Use Cases




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Source: Q4 2010, Unica’s Global Survey of Marketers

About half of marketers admit that their social

media marketing efforts are totally siloed

Measurement and ROI are elusive

Campaigns are poorly integrated

Only brand / mass marketing techniques are employed

Opportunity to engage individuals is ignored

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Even though social media is pervasive, using it successfully in marketing campaigns today is hit or miss

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By linking together social and customer data, we can help our clients market more effectively across multiple channels

Planning, coordinating and executing marketing campaigns to stimulate demand – it’s a process that includes social media

Create relevant

messages

Deliver targeted messages and offers

Optimize email, display and search ad programs

Insights from social media

and other data sources

Capture & analyze responses and

refine

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Introducing: Multi-channel campaign management with integrated social analytics

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An integrated approach which allows organizations to measure, adjust and, ultimately, use social media data to gain greater precision for their campaigns.

How can I leverage social analytics to optimize return on my campaigns?

How can I maximize the value of our social insights

for marketing?S oc ia l Media

Ana lys t

Marketing Mana ger

• Measure the social impact of campaigns through earned and owned media

• Gain greater campaign precision by applying predictive models to socially-derived segments

• Evolve and align marketing and social campaigns through a centralized workspace

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“Benjamin's Grocery” - Winning with Social Analytics & Smarter CommerceHow does it work?

Customer Website Behavior• Clicks• Searches• ViewsPrevious Campaign Data• Contact history• Response/purchases• Test campaigns Modeling Scoring Campaigns

Rank best offers

Social Media• Tweets• Blogs• ForumsCommunities• Surveys• Advocate dialog• Discussions

Derive ideas, insights and actions from Social Media

Execute the campaign using Individual Data for consumers who opted-in

Multi-Channel Marketing

AnalyticsSentiment dashboard

Emerging Topics Affinities Conversations you asked

about and those you didn'tWhat is correlated with what?

Pulling consumers from where the conversation is on the web, match them to segments based on

their actions on Benjamin's website

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Perceptual Map Spatial alignment of attributes

Predict who is likely to respond

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“Benjamin's Grocery” - Winning with Social Analytics & Smarter CommerceWhat is the storyline?

Introducing Benjamins Grocery Stores Competition in the grocery business can be intense and Benjamins faces their fair share with Jurassic, a low-price chain with broad presence in the market.

The Market Event On January 20th, 2012, Jurassic announces the end of ad hoc campaigns and the beginning of “every-day low prices”. They drop prices by 12-15% for 3000 products.

Benjamins' Research Knowing that they can't profitably copy Jurassic's price strategy, Benjamins mobilizes a team of experts to search for a better response. They discover that customers have a core un-met need for “healthy, interesting meals at a fair price”.

Benjamins' Response The Benjamins team rapidly tests a creative plan to hire well-known chefs to sponsor new recipes that use Benjamins store brand products. Their communities-of-interest like it – particularly “Moms”, “Singles” and “Gourmets”. They kick-off a new 1:1 cross-channel campaign that lasts through the rest of Q1.

The Results Over the two-month campaign, Benjamins gains market share and grows profit by 8%.

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“Benjamin's Grocery” - Winning with Social Analytics & Smarter CommerceWhat products are used?


Rank best offers


Derive ideas, insights and actions from Social

Media

Execute the campaign using Individual Data for consumers who

opted-in



Emerging Topics

Affinities Conversations you asked




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2

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How can Benjamin's quickly understand their differentiators and competitor vulnerabilities?

Where can all of the relevant information be brought together for productive decision-making?

What optimization can be applied to campaign parameters?

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What can they use to do root cause analysis and uncover un-met needs among their target customers?

How can Benjamin's pivot from aggregate to individual data?

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“Benjamin's Grocery” - Winning with Social Analytics & Smarter CommerceWhat products are used?


Rank best offers


Derive ideas, insights and actions from Social

Media

Execute the campaign using Individual Data for consumers who

opted-in



Emerging Topics

Affinities Conversations you asked




1

2

3



● Cognos Consumer Insight 1.1● SPSS Modeler 15.0● Cognos 10.1● Connections 4.0

● Coremetrics Web Analytics ● Cognos Consumer Insight 1.1

● Unica Campaign● SPSS Modeler 15.0● Cognos Consumer Insight

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Agenda

12

3

Social Analytics Overview & Interesting Use Cases




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How does the Social Analytics Solution help drive positive business outcomes?

Understand. Know what customers and employees think about you

Predict.Take the guesswork out of decision-making

Act. Find experts and take action

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Social media analyst mines dataAn LOB, HR or IT analyst harvests internal and external social media sources, including....

Facebook, Twitter LinkedIn

.... to derive new business insights with Cognos Consumer Insight.

Other datasets can be included, as needed, to optimize or predict the outcome of business decisions with SPSS Modeler.

The analysts results are delivered in report formats that are easily consumed through Cognos 10 by LOB leaders and teams.

The Social Analytics Solution for Social Business

Communities take actionKey data elements, reports and insights are surfaced through IBM Connections.

• Marketing can provide targeted messaging• Sales can create tailored offerings• Product development can crowdsource innovation• Customer service can pre-empt problems• HR can improve corporate culture

“The IBM Social Analytics Suite for Social Business combines sophisticated analytics with the power of community action to interpret social media insights and take a focused, intelligent response to real

world market opportunities.”

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How does this solution deliver value?

IBM Social Analytics Solution combines sophisticated analytics with the power of community action to interpret social media insights and take a focused, intelligent response to real world market opportunities.

–Understand what customers and employees think about you. Sentiment analysis provides businesses with fast, accurate and actionable insight into social communities and media to optimize marketing campaigns, enhance customer and employee relationships, build advocacy & loyalty and develop better products and services.–Take the guesswork out of decision-making. Predictive analytics allow customers to make confident decisions in every area of the business, from sales to marketing, product development, finance, operations and employee relationships. Predictive analytics gives customers the knowledge to predict…and the power to act.–Find and enable experts to take action. IBM’s Social Business platforms drive business growth by connecting the right resources and experts to respond quickly to customer and corporate needs. Communities allow organizations to dynamically build new connections between people, the information they know and the tasks they are executing to create real results.

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An example: Social Pulse – What are employees saying about their company’s brand

Social Pulse

• A Social Analytics Solution for marketing and communications professionals

• Focuses on internal versus external consumer perception of your brands and products

• Based on the idea of your workforce being brand ambassadors

• Experimenting within IBM• Externally

>25,000 employees on Twitter, >300,000 on LinkedIn, and > 198,000 on Facebook

• And Internally > 300,000 IBMers use IBM Connections Communities, Blogs, Wikis, Profiles, Forums etc.

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Use Case – “Employee Life-cycle”: Social Analytics & Smarter Workforce

Social Media• Tweets• Blogs• Forums

Communities• Surveys• Advocate dialog• Discussions

Derive measurable, aggregate insights for employee’s sentiment from Social Media


Emerging Topics Affinities Conversations you asked


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HR Datastore• Compensation• Performance ratings• Employee Demographics

Historical Corp Performance • Financials• Country-Specific Events• Ad Hoc Inputs

Modeling ScoringCommunications

Optimize employee motivators

(i.e. compensation etc)

Model and micro-segment employee groups to refine policies, focus communications & drive culture

Multi-channel outreach

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Predict: productivity, issues, turnover

Social Pulse Employee sentiment

visualization

© 2011 IBM Corporation27

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Speakers• Leslie Ament, Vice President, Research & Client Advisory, Hypatia Research Group, • Mark Heid, Program Director, Social Analytics, IBM

Join IBM & Hypatia Research Group for insightful November 6th Webcast:Social Analytics & Intelligence: Converting Contextual to Actionable Insights

This webinar will review the recent findings from Hypatia Research Group’s benchmark study, Social Analytics & Intelligence: Converting Contextual to Actionable Insights, and demonstrate how business users and analysts collaborate to transform a multitude of online contextual sources into insight, predict optimal next best actions and outcomes and act upon this consumer insight for business gain.

November 6th, 1:00-2:00 pm EThttp://events.unisfair.com/rt/IBM~SocialAnalytics

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Thank You!

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Mark [email protected]

twitter: @mheid

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mailto:[email protected]

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lbi 4153 - from social insigts to business advantage - iod conf (ibm)

Documents

social business analytics

social media68

social mediaexecute

center notessocial media

social media profiles

data explosion

customer needs

customer collaboration