Growing and retaining your customer base with customer analytics

Transcription

1 Vivian Braun, WW Solutions Marketing Manager 2 July 2015 Growing and retaining your customer base with customer analytics

2 Content 2 The way customers engage with organizations is changing Organizations response to this change How can Predictive Customer Intelligence help Demonstration Q&A

3 Challenges facing organizations 80% Of CEOs believe they deliver a superior customer experience 8% Of their customers agree 3

4 The transformation of the customer relationship Find me Using visualisation and analytics to discover new customer segments 4 Compare me Offer peer analytics in virtual channels Ask me Consulting customers on products, services, and social issues Trade with me Sharing data, location, and new ideas in return for better products and value Advise me Bringing expertise to every client interaction Educate me Digital online education and tips in the moment Know me Offer new products and services based on understanding my wants, needs Alert me real-time predictive analytics and personalized customer communication Grow with me Data and insight connecting the lives of customers, households Let me choose Options vs. prerequisites, roadmaps vs. checkboxes Excite me Unexpected services at unexpected moments Protect me Multifactor security that doesn t punish the innocent

5 The consumer s experience is rarely linear some move more like this! Online Owned by: Mobile Brand A Call center Brand B Brand C CUSTOMERS & PROSPECTS Stores Kiosk, ATM, etc. Brand D Channel X Channel Y Point of sale Channel Z Postal mail 5

6 Sales, marketing and customer service imperatives have remained constant Voice of the (empowered) customer Deliver value across all touch points Customer growth and retention Marketing ROI Customer Loyalty 6 Customer acquisition

7 But the challenges have grown Difficult to deliver end-to-end customer analytics solution able to consume, integrate, analyze, score and determine most appropriate action with individual customer Inability to gather and synthesize insights from analysis of social, text and transactional customer data to generate real-time information to predict customer sentiment and needs Incomplete view of customer information at the time of interaction, resulting in inappropriate or incomplete offers, communications or both Inconsistent service delivery and weak customer relationships, resulting in high churn Lack of channel integration and siloed lines of business, causing inconsistent or tactical customer interactions Focus on uncoordinated marketing offers one-hit selling, as opposed to lifetime value Challenged in using analytics to add short-term value or enhance long-term strategy 7

8 How should the brand respond and redesign their customer experience? Right Time Customer Insight Right Customer Customer Segmentation Right Place Omni-Channel Optimisation Right Service Customer Service Right every time 8 Execute single view of the customer Develop integrated customer insight engine Deploy spectrum of approaches to segmentation Adopt agile and in context real-time profiling Deliver seamless cross channel experience; merge digital/physical data analysis and deployment Architect customer experience Build an experience that connects emotionally Providing the customer with the right offer, right time, right place, in real-time if necessary

9 Leaders leverage big data and analytics more effectively over a wider range of organizational processes and functions And they apply it over a larger breadth of organizational areas More leaders use big data and analytics for innovation Conceiving new ideas Creating new business models Developing new products and services 83% Customer experience 22% Marketing & Sales 79% 18% 76% 56% Corporate strategy n=340 Leaders 64% 41% 60% 30% 60% 47% n=341 Strugglers Source: IBM Institute for Business Value, Innovative analytics,

10 Analytics leads to actionable business insights that can drive new types of innovation and success Organizations using big data and analytics within their innovation processes are 36% more likely to report they are substantially outpacing their competitors in growing revenue during the past three years than those who do not use big data and analytics n=1004 Source: IBM Institute for Business Value, Innovative analytics,

11 CMOs plan to put the components of a broad digital strategy in place throughout the organization Digital ambitions CMOs 16% 87% Integration of crosschannel touchpoints 83% 13% Analytics to capture customer insights 20% 78% Social networks to foster collaboration 13% 73% Workforce aligned to opportunities Today 3 5 Years 11% 69% Digitally enabled supply chain Source: IBM Institute for Business Value, Stepping up to the challenge: CMO insights from the Global C-suite Study 11 11

12 CMOs expect to accelerate the introduction of digital marketing technologies over the next three to five years Intended use of digital technologies (3 5 years) Advanced (predictive) analytics 94% 66% Mobile applications 94% 80% Customer relationship management 81% Collaboration tools 87% 68% Content management 73% Search engine optimization 62% Reputation management 63% marketing 47% 46% % 81% 80% 79% In 2011, 29% of organisations felt prepared for the data explosion, Source: IBM Institute for Business Value, Stepping up to the challenge: CMO insights from the Global C-suite Study 12 In 2013, only 18%

13 Digital Pacesetters integrate external and internal data sources more extensively and so tend to develop a much deeper understanding of their customers Level of customer understanding 56% 30% 19% Digital Pacesetters Social Strategists Traditionalists Source: IBM Institute for Business Value, Stepping up to the challenge: CMO insights from the Global C-suite Study 13

14 Digital Pacesetters invest significantly more in analytics than Social Strategists or Traditionalists across the entire customer lifecycle Source: IBM Institute for Business Value, Stepping up to the challenge: CMO insights from the Global C-suite Study 14

15 Looking ahead, Pacesetters are more focused on the latter stages of the customer lifecycle: strengthening existing customer relationships Source: IBM Institute for Business Value, Stepping up to the challenge: CMO insights from the Global C-suite Study 15

16 CMOs identified three key factors for tackling their priorities, each of which relies on the effective use of emerging technologies Source: IBM Institute for Business Value, Stepping up to the challenge: CMO insights from the Global C-suite Study 16 16

17 Integrated capabilities designed to fuel end-to-end marketing success 17 17

18 The optimized customer insight and engagement process Collect data Real time or historical Analyse Decide and execute Multi-channel customer interactions Interactive voice response Web Acquisition models Campaigns Campaign response models Offers Churn models Messaging Customer lifetime value Lead management Price sensitivity Cross channel campaign management Product affinity models Segmentation models Real time marketing Sentiment models Marketing event detection Up-sell / Cross-sell models Digital marketing Mobile Short Message Service Social media Chat Voice 18

19 Organizations can Acquire, Grow and Retain customers by harnessing all customer data to improve customer interactions and relationships RETENTION PERSONALIZATION GROWTH ACQUISITION IBM IBMCorporation Corporation 2015

20 IBM Predictive Customer Intelligence is a unique analytics offering for acquiring, growing and retaining customers Real-time, optimized recommendations at point of decision Personalization with rich 360 view of customer Exemplary customer experience every interaction in context Accelerate Time-to-Value Singular Software Capabilities (IBM SPSS, IBM Cognos Business Intelligence) 20 Customizable Cross-IBM, Software and GBS Solution (Analytics with Real-time Data Integration) Packaged CrossIBM, Software Product (Analytics with Real-time Data, Connectors and Industry Samples) Big data, predictive and advanced analytics, decision management, scoring and business intelligence Real-time capabilities Industry-specific samples: retail, telco, insurance and banking IBM Interact, IBM Campaign, IBM BigInsights and GBS Lifetime Value Maximizer connectors Open architecture 20

21 Many, many rich modeling techniques Demographic Segmentation Churn Modeling, Next Best Offer Real-time Decision Management Social Network Analysis 21 Campaign Management Loyalty Segmentation Customer Value Calculation

22 and optimisation Maximizing return for each customer Possible campaigns Business rules Response Probability Cost (Prob * Rev) - Cost Revenue A 50% 25% B C Maximizing return across the entire campaign Possible campaigns A 22 %?42?$? B %??$? C 87$? %?? Constraint: Budget Exceeded

23 Real-time decision loop allows predictive models to get even smarter a. An activity occurs that calls for a decision. 3 Facts, recent events, options b. The context from the activity is passed to the decision process. c. The decision process augments the context with stored information and runs the decision model. d. One or more actions are recommended to the activity. e. The activity feeds back the results to help tune the model over time. 23 Decision input, actions and outcomes 5 Information 3 Decision 2 Feedback Context Action 1 4 Activity

24 Industry accelerators support unique industry use cases 24 Available to clients (free of charge) on AnalyticsZone:

25 Customer Successes 25

26 India's Matrimony.com uses business intelligence to improve matchmaking algorithms and fine-tune marketing efforts 90% faster deployment of targeted marketing campaigns Improved outcomes of matchmaking results thanks to more powerful analytics Enhanced decisions with a more comprehensive view of business operations 26 Business challenge: Finding partners for more than two million members is critical to Matrimony.com s reputation, and upgrading those members services helps keep the company profitable. Unfortunately, the company s existing matchmaking engine was no longer able to manage the data it had accumulated, and slow, manual marketing efforts were delivering too little, too late. The smarter solution: Matrimony.com developed an innovative new solution that draws insight from past successes, creating predictive models that help improve matchmaking outcomes. In addition, a comprehensive marketing approach uses near-real-time information to help the marketing team deliver targeted campaigns to the right people at the right time, no matter what the channel: SMS, , telephone or retail outlet. Thanks to this solution, we achieved two very important goals. First, we get two soul mates together much more quickly and with less effort. Second, we deliver more happy marriages than ever before. Dr. Jayaram K Iyer, chief strategy and analytics officer

27 A retail leader in France analyzes, segments and scores customer behavioral data, creating personalized campaigns that drive sales and traffic Business Challenge: Inability to track campaign success High dependency on mass mailing paper fliers Inability to deliver relevant messages personalized way The Smarter Solution: The retailer deployed a customer behavior insight solution that aggregates, models and segments millions of customer behavioral and sales data points, delivering a 360-degree customer profile view. By scoring consumers, marketers can predict which customers are most likely to purchase certain products based on their lifestyle, shopping patterns and buying preferences. The insight is used to develop highly customized promotions that resonate with customers. Because campaigns can be measured, the company can repeat successful promotions and eliminate those that did not work % improvement in ability to measure campaign effectiveness Lower campaign costs by scaling back use of generic paper fliers and cutting printing costs Increased store visits and basket size by customizing offers

28 Demonstration 28

29 Summary 29

30 IBM clients have gained enterprise wide value 50% 140% reduction in revenue erosion 35% Sales improvement in online purchases $1M saved every year Finance ROI within 6-12 months 25 point Marketing Predictive Customer Intelligence increase in effectiveness of customer churn campaigns increase in marketing campaign effectiveness Customer Services 270% increase in cross-sell revenue 20% reduction in customer churn

31 The IBM difference 31

32 Trademarks and notes IBM Corporation 2015 IBM, the IBM logo, ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at Copyright and trademark information at 32 Other company, product, and service names may be trademarks or service marks of others. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.