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A Marketer’s Guide To Customer Analytics: People, Processes & Technology - 24 June 2013 - IBM Presentation Slides - PDF

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A marketers guide to customer analytics people processes and technology A Marketer’s Guide To Customer Analytics: People, Processes & Technology …

A marketers guide to customer analytics people processes and technology A Marketer’s Guide To Customer Analytics: People, Processes & Technology

Presentation Slides
Webinar: IBM and Forrester
24 June 2013

Srividya Sridharan
Analyst Serving Customer Insights Professionals
Forrester Research

Marygrace Bateman
Market Manager
IBM

Heather Clancy
Award-winning Business Journalist

Webcast - http://goo.gl/Rld3T5

Published in: Technology, Business

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  • 1. © 2013 IBM Corporation A Marketer’s Guide To Customer Analytics: People, Processes and Technology Srividya (Sri) Sridharan, Analyst - Customer Insights, Forrester Research Marygrace Bateman, Market Manager, IBM July 24, 2013
  • 2. © 2013 IBM Corporation2 Customer Analytics webinar series  Previous Customer Analytics webinars – Now available OnDemand at www.ibm.com/software/analytics/ca-webinars or in the Events widget – Driving Relevant Business Insights From Social Media – The ROI of Social Media is Social Media Analytics Applied – 5 Steps to Nurture Customer Loyalty, and Increase Profitability, Now – United Stationers Uses Smarter Marketing to Drive Customer Value
  • 3. © 2013 IBM Corporation Speakers 3 Marygrace Bateman Market Manager IBM @bateman_mg Srividya (Sri) Sridharan Analyst - Customer Insights Forrester Research @Srividya
  • 4. © 2012 Forrester Research, Inc. Reproduction Prohibited #big data and marketing What‟s trending now? #customer analytics #strategy #people #strategy #process #strategy #tech & services
  • 5. © 2013 IBM Corporation 2+ billion people on the Web by end 2011 30 billion RFID tags today (1.3B in 2005) 4.6 billion camera phones world wide 100s of millions of GPS enabled devices sold annually 76 million smart meters in 2009… 200M by 2014 12+ TBs of tweet data every day 25+ TBs of log data every day ?TBsof dataevery day Current business and technology trends
  • 6. © 2013 IBM Corporation The uncertainty of new information is growing alongside its complexity 2010 9000 2015 Sensors & Devices VoIP Enterprise Data Social Media 8000 7000 6000 5000 4000 3000 Source: IBM Global Technology Outlook 2012 IBM source data is based on analysis done by the IBM Market Intelligence Department. IBM Market Intelligence data is provided for illustrative purposes and is not intended to be a guarantee of future growth rates or market opportunity We are here.
  • 7. © 2013 IBM Corporation Under preparedness Percent of CMOs selecting as “Top 5 Factors” Data explosion 71% Social media 68% Channel & device choices 65% Shifting demographics 63% Financial constraints 59% Decreasing brand loyalty 57% Growth markets 56% ROI accountability 56% Customer collaboration 56% Privacy considerations 55% Global outsourcing 54% Regulatory considerations 50% Corporate transparency 47% Need for change to deal with data explosion and social media Percent of CMOs indicating high/significant need Invest in technology Understand analytics Collaborate with peers Validate ROI Address privacy Integrate insights Rethink skill mix 73% 69% 65% 64% 52% 49% 28% Source: IBM’s 2011 Global CMO Study: From Stretched to Strengthened (2011) IBM Global CMO Study: CMOs underprepared for new market dynamics
  • 8. “What enterprise areas does your big data initiative address?” Base: 60 IT professionals (multiple responses accepted) Source: June 2011 Global Big Data Online Survey Marketing leads the enterprise in Big Data initiatives
  • 9. © 2012 Forrester Research, Inc. Reproduction Prohibited 9 #customer analytics
  • 10. © 2012 Forrester Research, Inc. Reproduction Prohibited What is Customer Analytics? Customer analytics solutions (technology, software, or services) allow firms to analyze customer data to optimize customer decisions and use the analytical insight to design customer-focused programs and initiatives that drive acquisition, retention, cross-sell/upsell, and targeted marketing campaigns. Some examples of customer-focused applications of analytics include customer segmentation, targeting, customer profitability analysis, next-best-offer analysis, profiling, and customer attrition assessment. 10
  • 11. A regional bank uses uplift response modeling to generate incremental sales for direct deposit acquisition campaign. Image source: http://abcnews.go.com/
  • 12. A financial services firm uses cross-sell and next-best action models to personalize offers at the point of customer interaction. Image source: http://www.gunster.com/practice/banking-and-financial-services/
  • 13. Customer analytics drives value across the life-cycle Source: July 29, 2011, “How Analytics Drives Customer Life –Cycle Management” Forrester report WHO to acquire/retain? HOW MUCH to spend? WHEN to target? WHAT to offer?
  • 14. Customer analytics use is acquisition-heavy
  • 15. Segmentation and targeting is bread and butter for analytics users…..NBA, social, loyalty would be icing on the cake
  • 16. © 2012 Forrester Research, Inc. Reproduction Prohibited 16 #customer analytics #strategy #people
  • 17. Expert User Casual User
  • 18. Marketing scientists must now translate „geek‟ to „Greek‟ Marketing scientists
  • 19. © 2013 IBM Corporation Product Marketing ...can identify the best performing micro- segments for a new product offering Brand Manager...can understand and quantify exactly how social media is affecting my business and the brand CMOs ...can deliver personalized and consistent value across all channels at any time to all customers Demand Generation ...can always deliver the customer the right offer at the right time at the right place Marketing Operations ...can understand which programs were best performing across any touchpoint or segment Applying analytics to specific marketing functions So that… 19
  • 20. © 2013 IBM Corporation IBM SPSS Analytic Catalyst Demo 20
  • 21. © 2012 Forrester Research, Inc. Reproduction Prohibited 21 #customer analytics #strategy #process
  • 22. Four core activities define the customer analytics process
  • 23. Production Consumption & Activation
  • 24. Identify the level of insights sharing across the organization
  • 25. © 2013 IBM Corporation Gains a 360 degree view of customers to drive cross-brand, targeted marketing campaigns The Opportunity Redcats, a retail group in France that includes 17 major retail brands around the world, wanted to deepen the customer experience across its brand websites by understanding how customers behave online. Each brand was already collecting an enormous amount of data from both online channels and stores, but no one had a complete, cross-brand view of customers. 4 Core Activities to Enable Customer Analytics Process: Data Management: near-real-time stream of customer data is collected and stores in central database (purchases, click streams, mobile app usage, online surveys, store transactions) • Reduced data processing times by 90% Redcats Analytics Production: sophisticated statistical and predictive analytics used to analyze patterns in customer behavior and demographics and use them to predict how customers will behave in the future • Higher conversion rates due to rich understanding of why customers buy Analytics Consumption: analysis tools available to statisticians and brand managers to gain insight into cross-brand efforts; solution integrated in CRM • Monitors customers tendencies and detects patterns in behavior used to predict response Analytics Activation: analysis enables marketing teams to run personalized marketing campaigns • Gained full payback on investment in 7 months, with total ROI of 122%, due to smarter targeting
  • 26. Insight at the point of interaction is a key challenge 26
  • 27. © 2012 IBM Corporation27 What does real-time optimization look like?
  • 28. © 2012 IBM Corporation28 What does real-time optimization look like?
  • 29. © 2012 IBM Corporation29 Structured, unstructured, social media and business intelligence data Business rules Optimization Predictive analytics
  • 30. © 2012 Forrester Research, Inc. Reproduction Prohibited 30 #customer analytics #strategy #technology and services
  • 31. The customer analytics ecosystem has three degrees of separation Source: November 2012 “Deciphering A Fragmented Customer Analytics Ecosystem”
  • 32. Analytics/BI tops the list of marketers‟ technology needs Marketing
  • 33. © 2013 IBM Corporation Customer analytics maturity model . . .Insight for Decision Makers The Next Best Action Information Cost Reduction Foundational 0.2% - 2.9% Information Sharing Competitive 6.2% - 18.7% Information Responsiveness Differentiating 16.9% - 38.2% Information on Demand Breakaway 24.1% - 64.3%
  • 34. © 2012 Forrester Research, Inc. Reproduction Prohibited 34 #customer analytics #takeaways
  • 35. Customer analytics gets a makeover Big Data poses new challenges for customer analytics, faced with three key trends: • Analytics production to analytics consumption and activation • Expert user to casual user • Static intelligence to dynamic, real-time intelligence 35
  • 36. © 2013 IBM Corporation Next Steps… Identify place to start • Focus on 1 business problem • Perform cost/benefit analysis1 Leverage existing tools • Team up business strategy + implementation strategy • Start with readily accessible data, open architecture2 Execute • Define achievable goals • Build on small wins to launch larger initiatives3 Perform cost/benefit analysis: What is spend on avg. marketing campaign now? What if we could send offers to 20% of our customers, but receive 70% returns?
  • 37. © 2013 IBM Corporation