Customer Loyalty. Carmen Raileanu, Europe, Technical Sales Leader for Process Transformation

Transcription

1 Customer Loyalty Carmen Raileanu, Europe, Technical Sales Leader for Process Transformation Filis Cadar, Technical Sales Specialist, Romania 2011 IBM Corporation

2 Retail leaders are focusing on three key imperatives PERSONALIZED SHOPPING EXPERIENCES EFFICIENT MERCHANDISING AND SUPPLY NETWORK TRANSFORM AND OPTIMIZE OPERATIONS Vast amounts of customer data available can be harnessed to create a single view of each customer, find patterns and deliver more relevant experiences Smarter merchandising and a more agile supply network, retailers can successfully match customers to offers and deliver merchandise more effectively New tools and data allow retailers to improve their operations to allow for bottom-line optimization and top-line growth 2 IBM Institute for Business Value 2015 IBM Corporation

3 The Need for Process Transformation To Achieve Industry Imperatives is Pervasive Across Domains Loyalty & promotions management Multi-channel pricing automation Event driven marketing Catalogue management Online shopping, offer configuration Order management Contract management On-boarding new vendors Vendor trade fund management Merchandise calendar planning Fraud detection & management Decision checking & automation Workforce compliance Multi-channel inventory location Process generation & resource assignment Dynamic process routing Product qualification & quality recommendations Dynamic resource assignment Sales network/dealership compensation Marketing & financing program validation 3

4 Process Transformation in Retail Six Key Use Cases Promotion Loyalty Up/Cross-sell Vendor On-Boarding Merchandise Calendar Planning Promotion Planning & Execution Vendor Trade Fund Management Demand-Driven Inventory Locator 4

5 Promotion Loyalty Up/Cross-sell 1 Promotion Loyalty Up/Cross-sell 5

6 Key Challenges with Customer Insight and Loyalty Programs Businesses face numerous obstacles to retain and gain new customers Inability to quickly roll out new promotions Inability to gain customer insight from disjointed loyalty programs Customer Insight and Loyalty Programs Inability to make selective and personalized customer touches Need to simplify administration of loyalty programs 6 Need to reduce the cost and workload to run new promotions

7 Customer loyalty - act in context with data Contextual data has a half-life mobile sentiment geolocation IOT sensor social weather Millions of entities, 1000s transactions Context Location Time Activity Relation Identify Opportunity & Risk Action Personalized Proactive Dynamic operationalize it with real-time action The average half-life of data for tactical decision making is less than 30 minutes, with some as low as 6 seconds. After that, only 30% of data has any value. ~Measuring the half life of data, Nucleus Research,

8 Detect Decide DEMO - Next Best Offer for Digital Retail Business Create new revenue stream by proposing the best offer at the right time 1 Customer Customer talking about being tired and thinking on a New Look Twitter 2 Understand Context (Watson NL Classifier) 3 6 Next Best Offer Mobile Events Sense Events Correlate Events 4 Detect Patterns 5 8 Customer arrives at store (Geolocation events) Operational Decision Management Records & Historical Data Internal Systems & Databases

9 DEMO BUSINESS DECISION when a retail event occurs if all of the following conditions are true :, - the propensity to buy GYM_PASS of 'the client' is at least 0.8 or the total amount of all purchases during the last period of 6 months where the type of good of each purchase is GYM is at least the city of this banking event is London - there is no product recommendation where the code is LONDON GYM PASS and this product recommendation is within 30 days before now, then emit a new product recommendation where the code is ORGANIC FOOD; 9

10 DEMO BUSINESS DECISION when a retail event occurs if all of the following conditions are true :, - the propensity to buy ORGANIC_FOOD of 'the client' is at least 0.8 or the total amount of all purchases during the last period of 6 months where the type of good of each purchase is GYM is at least the city of this banking event is London - there is no product recommendation where the code is LONDON GYM PASS and this product recommendation is within 30 days before now, then emit a new product recommendation where the code is ORGANIC FOOD; 10

11 DEMO BUSINESS DECISION when a retail event occurs if all of the following conditions are true :, - the propensity to buy ORGANIC_FOOD of 'the client' is at least 0.8 or the total amount of all purchases during the last period of 6 months where the type of good of each purchase is WELLNESS is at least the city of this banking event is London - there is no product recommendation where the code is LONDON GYM PASS and this product recommendation is within 30 days before now, then emit a new product recommendation where the code is ORGANIC FOOD; 11

12 DEMO BUSINESS DECISION when a retail event occurs if all of the following conditions are true :, - the propensity to buy ORGANIC_FOOD of 'the client' is at least 0.8 or the total amount of all purchases during the last period of 6 months where the type of good of each purchase is WELLNESS is at least the city of this retail event is Constanta - there is no product recommendation where the code is LONDON GYM PASS and this product recommendation is within 30 days before now, then emit a new product recommendation where the code is ORGANIC FOOD; 12

13 DEMO BUSINESS DECISION when a retail event occurs if all of the following conditions are true :, - the propensity to buy ORGANIC_FOOD of 'the client' is at least 0.8 or the total amount of all purchases during the last period of 6 months where the type of good of each purchase is WELLNESS is at least the city of this retail event is Constanta - there is no product recommendation where the code is ORGANIC FOOD and this product recommendation is within 30 days before now, and this product recommendation is within 30 days before now, then emit a new product recommendation where the code is ORGANIC FOOD; 13

14 Cognitive Insight - Watson Services used in demo scenario Natural Language Classifier classifies the tweet based on its intent The bank has trained the classifier Yoga I d really like to start yoga classes I love yoga classes My friend goes to a yoga retreat etc Food I love French food I had a good Italian pasta yesterday I want to go to the new Greek restaurant etc... Personality Insights has extracted and analyzed Carmen s personality attributes by scanning inbound communication from her ODM then decides the optimal way to engage with her 14

15 Dynamic Pricing & Recommendations 15

16 Dynamic Pricing & Recommendations 16

17 A big retailer from US Rule Management Solution 1. Ability to apply discounts and promotions at POS 2. Eligibility & restriction rules at POS 3. Apply restrictions, dispatch payment, apply discount / offer according to membership cards used at payment time 17

18 A Beauty Care Retailer Meets customer s expectations by better understanding their needs Challenges Paper-based loyalty program offered limited visibility into the buying activities of its customers Manual processes were slow to capitalize on sales opportunities Customers and store staff frequently found promotions confusing and difficult to use Benefits Keeps decision makers better informed with real-time visibility into sales trends and customer buying patterns Improves customer satisfaction with an automated targeted promotions system Standardizes promotion efforts across 1500 retail locations Solution New loyalty program captures sales data in real-time enabling a rapid response to new trends Using business rules this retailer automates rewards and promotion management to offer customers the best promotions at checkout Promotions are uniquely targeted based on customers individual buying histories Software Offerings: IBM Operational Decision Management 18

19 French beauty retailer A complex & volatile set of promotional offers 2+ promotional cycles per month on a given catalog segment 50+ promotional offers per cycle Store promotion Mother s Day Offer: -30% on Eau De Toilette Sunshine Offer: 1 sunshine lipstick offered for any solar cream purchase 1 loyalty point for $1 spent All Boxes» offer A surprise gift for any purchase $50 Happy Hour offer +5 loyalty points from 2:00PM to 4:00PM Radio offer Say the magic word and get 5% discount Partner offer $5 discount on all skin care products Direct marketing offer 1 moisturizer offer for any day care & night care product purchase 1 necklace for any purchase $35 +3 loyalty point on any lipstick purchase 19

20 Tangible & proven track record Only IBM has the vision, market-leading capabilities and world class services to deliver transformational results Multi-channel inventory location reduced order lead times by 92% Promotions & loyalty management increased sales by 30% Vendor on-boarding improved time to value by 80% Vendor trade fund management improved cash flows and margins Merchandise calendar planning improved effectiveness by 20-25% Fraud detection & management streamlined case management in hours vs. days Workforce compliance 100% compliance with federal, state & union guidelines Contract management 20% processing cost reduction & increased revenues Order management 80%+ straight thru processing Marketing & financing program instant approval & program roll out in 2 days vs. 1 month 20

21 Grazie Gracias Spanish Traditional Chinese Italian Thai Merci French Russian Obrigado Brazilian Portuguese Danke German Arabic Japanese Korean Simplified Chinese 21

22 22 Back up slides

23 Smarter Process offerings Deliver on premise and now in the cloud Business Process Management (BPM) Operational Decision Management (ODM) Blueworks Live (Discovery) 23

24 What is Business Process Management? Through robust and flexible software capabilities and industry expertise, BPM enables customers to discover, model, execute, rapidly change, govern, and gain end-to-end visibility on their business processes Documentation & Compliance Software Expertise Continuous Process Improvement Deployment & Execution Visibility & Collaboration Business User Engagement Efficiency & Productivity Analysis & Optimization 24

25 Typical process problems Account Administration 1 Customer Service 3 Finance and Ops 6 Executive Management 1. Unstructured Tasks and 1 Communication (ex Paper or ) 1. Inefficient Working Environment Spans Systems 2 1. Inconsistent Prioritization 2 Invoice Reconciliation Teams 1. 3 Incomplete or Inaccurate Data Flow Between Systems 1. Lack of Control Over System 4 and Business Events (Exceptions) 4 1. Poor Visibility Into Process 5 Performance

26 Process Management & Decision Management bring order to the chaos 1. Automate workflow & 1 decision making Customer Service Account Administration Finance and Ops Risk Management Teams Executive Management Process Managers 2. Reduce errors and improve consistency 2 3. Standardize resolution across geographies 4. 3 Leverage existing systems and data 5. Monitor for business events 4 and initiate actions 6. Real-time visibility and 5 process control Customer Benefits 6 High reduction in manual work, errors Faster, more consistent issue resolution Easier to manage the business Consistent case handling Decision Managers 26

27 New data sources create new opportunities Chat & SMS Social Media Weather Websites, APIs, Images IoT Implications Customers expect personalized experiences, to interact and engage them in ways beyond traditional form-based transactions (chat, web, voice). It costs 6X more to gain a new customer than retain one - Gartner 27

28 CBO - Leveraging Unstructured Data Unstructured Chat & SMS Social Media Weather Websites, APIs, Images IoT Understand Interaction (Conversation) Understand Context (NL Classifier) Understand Sentiment (Sentiment Analysis) Understand Speech (Speech To Text) Understand Recognise Images Personalities (Visual Recognition) (Personality Insights) Transform to actionable insight Process and Decision 28