teradata day2010 sunum

Copyright © 2010 SAS Institute Inc. All rights reserved.

SAS Customer Intelligence: Integrated

Multi-Channel Marketing Platform

Rakela Semoil,

SAS Customer Intelligence Practice Lead

2

Copyright © 2010, SAS Institute Inc. All rights reserved.

Agenda

Introduction to SAS

Marketing Trends and Challenges

Overview SAS Customer Intelligence

SAS Approach: Multi-Channel Interactive Marketing Platform

Highlight : Marketing Optimization

Conclusion : Closed Loop Marketing with SAS

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Agenda

Introduction to SAS






4


SAS InstituteThe Business-Analytics-Software Company

“We want to be the first company people call when they

need to solve business problems.”

Dr. James H. Goodnight, CEO and founder of SAS Inc.

Founded 1976 in Cary, North Carolina

11.000 Employees worldwide in > 400 SAS Offices in 52 countries

SAS Türkiye since 1997

Revenue (Int.)

2,31 Billion US$

Investments in R&D

> 23 %

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Our references

http://www.vodafone.com.tr/index.php

http://www.avea.com.tr/index_tr.shtml

http://www.citibank.com.tr/homepage/tr/index.htm

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Agenda

Introduction to SAS





Real life examples


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The New Customer

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Multi-Channel Customer: Information gathering and buying behaviourfollows the evolution of channels and media. Rise of Internet & Mobile.

The New Customer

The Customer is already Multi-Channel

Engage

Transact

Fulfill

Service

WebCall

CenterBranch/Shop

Direct Mail eMail

„...a good example is the Automotive Industry:

Couple of years ago a consumer visited in

average 6 car dealer before he bought a car.

Today the average is 1,2 car dealer. Customers

find all relevant information in internet and they

make their decision in front of their

computer....when they visit the dealer they

already know what they want.“Philipp Schindler, Nordeuropa-Chef von Google

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„Consumer is a Cat“: Customer Loyalty is shrinking. Customers wish to be invited, integrated, entertained and treated „emotionally“. Consumers are more demanding.

The New Customer

We have treated consumers like dogs long time. We tried to train them through constant repetition of a message. We wanted to condition them. That does not work any more. The consumer of today does not react automatically when you call him. He behaves more as we know it from cats: idiosyncratic, independent, autonomous:

The consumer is a cat.

To conquer the heart of this new consumer type is one of the big challenges.

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From Consumer to Prosumer – Customer wants to be heard and participate. The lines between Consumer and Producer are often blurred – with considerable impact on buying behaviour.

The New Customer

http://www.time.com/time/magazine/0,9263,7601061225,00.html

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The New Customer

Erosion of Credibility and rising importance of Social Media – Customers scrutinize Organizations Marketing and Communications.

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Lack of Customer Insight or existing Insight is not used

No integrated multi-channel solutions for customer management

Planning and execution of marketing campaigns takes a long time,

No centrally “orchestration”

Inbound and outbound actions can not be connected, and the Internet/Online department is still separated from the rest

…but the reality is

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Agenda

Introduction to SAS






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Channels

Outbound-

Interactions

Feedback

Analytics and Data Mining

Optimization of

interactions

Marketing

Controlling

Inbound-

Interactions

Campaign

planning

Potential-

analysis

Campaign

design

Campaign

analysis

Marketing Resource Management

Campaign

optimization

Campaign

Fulfillment

SAS Customer Intelligence: Overview

Dat

a in

teg

rati

on

and

Dat

a q

ual

ity

Teradata

Other DB.

Text or PC files

Web data

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Channels

Outbound-

Interactions

Feedback

Analytics and Data Mining

Optimization of

interactions

Marketing

Controlling

Inbound-

Interactions

Campaign

planning

Potential-

analysis

Campaign

design

Campaign

analysis

Marketing Resource Management

Campaign

optimization

Campaign

Fulfillment

SAS Customer Intelligence: Overview

Dat

a in

teg

rati

on

and

Dat

a q

ual

ity

SAS CI Suite

Teradata

Other DB.

Text or PC files

Web data

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SAS® Customer IntelligenceIntegrated Multi-Channel Marketing Platform

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Agenda

Introduction to SAS






18


Understanding Optimization

Client Camp A Camp B Camp C

1 100 120 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 140 75

Campaign A

Campaign B

Campaign C

• Model scores define response probability for each campaign

• Probability * Expected Revenue = Expected Value

• Expected Value drives campaign allocation

• Constraints: Each customer gets only 1 campaign & each campaign gets 3 customers

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1 100 120 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 140 75

Campaign A

?

?

675

Campaign C

Expected Return:

Campaign Prioritization

?

Campaign B

Constraints:

Each customer - 1 campaign

Each campaign - 3 customers

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1 100 120 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 140 75

CampaignB

Campaign A

CampaignC

?

?

Expected Return: 640705

Constraints:


Each campaign - 3 customers Improvement: +30

Customer Rules ApproachCustomer allocation by Customer value

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1 100 120 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 140 75

Campaign B

Campaign A

Campaign C

Optimization Approach

Expected Return: ???780

Constraints:



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1 100 120 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 140 75

Campaign B

Campaign A

Campaign C

Optimization Approach

Expected Return: ???780

Constraints:



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Agent-Optimization

Revenue-Optimization

using the same Budget

Marketing ROI

Optimization

4 Mio. Customers

20 offer types

SAS Marketing

OptimizationPoV: Up to 80%

Budget ROI

Enhancement

In Production:

Revenue increase by

50% using the same

Budget

ROI increase from

407% to 637%

Solution ResultsChallenge

"“With SAS, we are a great step forward in integrated

planning and execution of campaigns. I am sure that

this solution gives us a clear competitive advantage.”

Heiko Güthenke, Abteilungsdirektor Kunden &

Geschäftsanalyse

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Real-Life ROI Examples

80% Budget ROI

50% more Return with same Budget

Reduction Campaign Planning

Time from 3 Months

to few Hours

Outbound-Calls reduced 25%

67% higher Return

and Reduction of Offers 12%

Prognosted incremental

Return per year >10 Mio. Euro

Live after 1 Month

Payback in 2 Months

Cost Saving per Year > 4Mil. $

Customer Churn down 25%

Effectivity up Factor 5

Credit Card Conversion Rate from

4-5% to 20-30%

20% higher Efficiency

in Campaign Process.

>$10 Million Cost Saving in 3 Years

57% higher Up-Selling

Response Rates up 10-250%

Continuous ROI >200%

SAS CI used for 17 Banks with

ca. 10 Million Customer with more

then 150 Campaigns per Week

Increase Retention Rate by >10%

(Best Customer Segment 80%)

Increase Repeat. Buyers

from 40% to more then 50%

Number Customers

from 10 Million to >30 Million

https://www.commerzbank.de/de/hauptnavigation/home/home.html

http://www.banquepopulaire.fr/



http://en.wikipedia.org/wiki/File:1-800-flowers_com.svg

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Agenda

Introduction to SAS






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…how does Closed-Loop Marketing Strategy lookwith SAS?

Develop Marketing Campaign

Optimize withconcurrent campaigns

Deliver personalizedOffer

Adjust offer in real time

AdressSocial Influencerswith Mobile Marketing

ManageMarketing Performance

Identify Business Needs

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Documents

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sas offices

founder of sas

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multichannel customer

new customer

customer loyalty