Augmented Reality, Artificial Intelligence, and Business Intelligence
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Augmented Reality, Artificial Intelligence, and Business Intelligence

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This is a group of 10 presentations for an MBA Marketing Class.

This is a group of 10 presentations for an MBA Marketing Class.

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  • Good evening. Tonight’s presentations will be on AR, AI, and BI. We have split our group into two smaller groups. The first group will speak about aspects of AR. We will take a break then the second group will speak about AI and BI. As this is a seminar course, we will accept brief questions of clarification during the presentation. If you have more involved questions or comments, we ask that you make a note, and we will allow for a question period both before the break and following the final presentation.
  • In researching definitions, I found that none of the definitions were concise or clear. This tells me that the technology is still new, and it is unclear exactly what defines it or sets it apart from other similar technologies.
  • The AR system uses a marker to orient the images. In this case, I have printed this marker from a website. To use this, I go to the website. The site asks for permission to access my webcam. Using my webcam, the software recognizes a marker from which to orient the image in 3-dimensions.
  • AR can be used to add a pseudo-experiential component to print media. A great photographic ad in a magazine will try and capture that singular moment at the height of an experience—sell the dream. Will AR escape the novelty phase and add a new facet to help convey that singular experience?
  • What if you could find a way to connect two products in the mind of consumers? When they think of one product another product becomes a natural part of that image or experience like soda and chips, movies and popcorn, trading cards and gum.
  • Perhaps Marcela can show us some ways that AR can be used to add value.
  • New applications for the futureToday, with advancements with connection speed and hardware, Augmented Reality is available across a variety of platforms including an at home web-based solutions and mobile applications.All that is required is a webcam connected to a PC, and augmented reality enhanced content. Once the software is loaded on the consumer’s PC, he will be able to experience Augmented Reality on his home PC simply by reading an interactive 3D book in front of his webcam.Imagine you are reading a book to your child in front of your laptop. On the screen, a 3D character suddenly pops up from the page and starts dancing and talking to you. practical use, and cites mobile as the next logical platform. "holding the phone over the view of a street sign in China and it does a language translation by overlaying the name in English over the existing sign. That really makes your day-to-day experience better.
  • 4100 posted videos on youtube of AR.Online campaigns: With only a few clicks designers can attach these interactive contents with print features such as brochures, catalogs, posters or product packages. Furthermore, the software allows creating specific workflows and cycles of animation e.g. pressing a key to open the door of a 3D-car model or changing the color of the model.3D-animations, movies, animated textures and audio. Providingadvantages to creative and design people by applying the augmented reality technology.Easily deployable at shows, conventions, exhibitions.Visitors will remember youKeep visitors longer
  • • Road show / B to C solutionsYou are organizing a road show or a street marketing campaign so that consumers get to see your products in an entertaining and original way? Easy to set up and dismantle the interactive kiosk is the perfect solution...• Exhibition / ShowYou are participating to an exhibition and you want to get the best out of your booth? Our solutions can help you to increase traffic and surprise your audience.Enhance your show or demonstration with brand new special effects that will entertain your audience and make the difference with competitors.Your company is organizing a seminar, a product launch or any kind of public presentation with top managers speaking on stage? Experience a dynamic support for an unforgettable presentation.BENEFITSA performer can interact with virtual objects andchange the physical world around them in real time.With a camera trained on the audience, theperformer can pull video of audience membersdirectly into the show. Your guests will be astonishedas they see themselves flying a helicopter or falling into a volcano
  • Auto: 3d model in real size, change colors, configuration, put products in their context, bring it on stage what is not possible in real life.Make corporate presentation differentCommunicate a dynamic imageReplicate the message to branchesDuring the ticket booking for a BBC Radio One music festival fans are invited to go to a website and print a flyer. By showing the flyer page to their webcam fans could watch an exclusive performance of the Frattelis, reliving part of the festival in their own homesMirrors: engage visitors in real time, Boost you retail sales- transform quests into their favorite characters, transport them to new worlds and create unique experience24 hour self operation- no operator needed. Ensure successful entertainment 24 hours a day without needing anyone on siteLet customers play with your products and be the actors of your brand!Just imagine a product brochure or even the product box itself, the customer picks it up and shows it to the kiosk screen. He can see himself holding the brochure. Then suddenly a virtual 3D object or character pops up and comes to life on the surface of the folder. The brochure and the 3D animation are played together, according to the user movements. Interaction with the 3D object is possible, giving this experience a magical touch.
  • Digital MarketingEnhance the visibility of your marketing campaigns with a groundbreaking applicationThe aim of marketing campaign is of course to get the best visibility possible for your product or services. Whether your marketing project is an online application, a special event, or a promotional campaign, augmented reality helps to connect consumers to brands.marketing tool gives brands the opportunity to generate quick and important return on investment.@home applicationWith very little time investment and virtually no learning curve for consumers augmented reality on line applications are a perfect way to connect consumers with a brand. The technology gives users the ability to control their environment using sound and compelling visuals.Outdoor marketing / promotional campaignWhatever the place, this revolutionary visual communication system will enhance your brand awareness by delivering an eye catching information to your audience. Let your customers experience a stronger connection with your brand.Magical MirrorFrom shop windows to queue lines this new marketing tool can help you spread out your communication campaigns in unexpected places. Thanks to a special face tracking system that recognizes their face guests are transport into new worlds and can even transform themselves into their favorite characters.Interactive KioskThis solution can help you set up spectacular demos in public places. Consumers get the opportunity to play with client brochures and products while augmented reality brings "tactile" imaginary element to this interactive experience. This kiosk can help you to set up very spectacular demos in public places. Thanks to this tool you will get the public play with your brochures and your brand anywhere you want.Kiosk solution can also be used to try on products like glasses or clothes in different colors in a funny and original way. Installed in public places or behind your shop or company window glass it really helps to create traffic.Easy to use and set up this is the perfect merchandising and promotional tool for distributors and malls.
  • Making an ad for the Mini 1:36. Making an ad like thisWould only cost a few thousand dollars or less. This is a low costway to getconsumer attention as it can be made and posted online, whereas abooth fora trade show would be more expensive, but having an interactivebooth woulddraw additional customer interest. EX? The AR BMW Repair systemthat Marcelashowed us would cost tens of thousands of dollars to develop, but thisinvestment would pay for itself very quickly by increasingefficiency
  • Good evening. Tonight’s presentations will be on AR, AI, and BI. We have split our group into two smaller groups. The first group will speak about aspects of AR. We will take a break then the second group will speak about AI and BI. As this is a seminar course, we will accept brief questions of clarification during the presentation. If you have more involved questions or comments, we ask that you make a note, and we will allow for a question period both before the break and following the final presentation.
  • Marketing Mix model, also known as the 4 P’s can be used by marketers as a tool to assist in defining the marketing strategy. The function of the Marketing Mix is to help develop a package that will not only satisfy the needs of the customers but will simultaneously maximize the performance of the organization.
  • Rob, Collaborative Decision Making and Social Media I wasn’t sure where you were going with this as it wasn’t defined. I took a shot at the CRM. The SI info went better on its own slide. About 50 words is a max for slides.
  • I hope this is reasonable. Did I get you off track here?

Augmented Reality, Artificial Intelligence, and Business Intelligence Augmented Reality, Artificial Intelligence, and Business Intelligence Presentation Transcript

  • Augmented Reality, Artificial Intelligence, and Business Intelligence Page 1
  • Augmented Reality Patrick Sullivan Marcela Munoz Kristina Repcinova Katie Brandenburg John Estabrook Page 2
  • What is Augmented Reality? •Augmented Reality is part of a continuum of technologies that falls somewhere between reality and virtual reality •AR technology is used to overlay real images with data or digital images to increase impact, to increase usability, or to enhance understanding Page 3
  • Examples Augmented Reality Has a real component Virtual Reality All digital Page 4
  • AR as Novelty •GE uses augmented reality as a novelty item to display alternative energy systems. This shows the product in a setting, but does it add value? http://ge.ecomagination.com/smartgrid/?c_id=googa ugreal&gclid=CP77tLzD_JwCFQ0aawod7QlybA#/au gmented_reality Page 5
  • AR for Online Sales • One of the drawbacks to online sales is the inability of the consumer to hold and inspect the product • BestBuy uses AR to give pseudo-touchability in the online sales process http://www.youtube.com/watch?v=hq_xVsaUqhc&feature =PlayList&p=02B49CFD48EC61CB&playnext=1&play next_from=PL&index=11 Page 6
  • AR in Print Media • Anything that can be printed can have an augmented reality component • This will add a new dimension to books, magazines, and http://www.youtube. product packaging com/watch?v=vB4F 8z5miTY&feature=re lated Page 7
  • Cross-Marketing • AR can be used to cross- sell products in a multi- media presentation that helps to drive sales http://www.youtube.com/watch?v=mfSLcvt7nSY Page 8
  • Escape from Novelty • Will AR escape from the perception of being a novelty in advertising? • To do this, AR must add value to products, to processes, and to experiences Thank you Page 9
  • Augmented Reality: Applications and Trends by Marcela Cuello Page 10
  • Augmented Reality “Augmented Reality, will blur the line between what's real and what's computer- generated. This will be possible by enhancing what we see, hear, feel and smell”. Page 11
  • Applications and Trends  Education • AR will change the “traditional” way of education and learning Page 12
  • Applications and Trends  Gaming • Virtual gaming • AR under the water Page 13
  • Augmented Reality By Hitlab http://www.youtube.com/watch?v=ZKw_Mp5YkaE Page 14
  • Other AR Applications  Health Industry • As a tool for diagnosis improvements • Training  Maintenance and Construction  Automobile Page 15
  • BMW’S VIDEO HTTP://WWW.YOUTUBE.COM/WATCH?V=P9KPJLA5YDS Page 16
  • Other AR Applications  Customer Design • Purchasing decision • Additional value to the online sale • Personal environment enrichment Thank you Page 17
  • B to C Advertising of AR + Four P’s Kristina Repcinova Page 18
  • Product • How does it work? • Where do I begin? • What should I do? • Benefits of AR Page 19
  • Place for Consumers • At home – Books & magazines – Games • In mobile devices Page 20
  • Promotion • Online – Youtube – Online campaigns • Offline – Self promotion by other companies – Shows – Magazines Page 21
  • Events/ Exhibitions • Road shows • Exhibitions • Press conference • Live stage presentation • Booth presentation Page 22
  • Marketing Possibilities – Interactive brochures – Interactive packaging – Interactive kiosks – Magic Mirror – Events Page 23
  • Digital Marketing • Enhance product visibility • Help connect customers to brands • Interactive kiosks Page 24
  • Price • Software is FREE • Expense is hiring people • Depends on customer creativity • Cell phone requirements • Software requirements • Computer requirements Page 25
  • World Leaders in Distributing AR • Independent Augmented Reality solutions – 3D measurement software – 3D modeling software – Augmented reality visualization software Page 26
  • Customers Page 27
  • Example of a Simple AR Ad • http://www.youtube.com/watch?v=dBser6_ gToA&feature=related Page 28
  • ETHICS Katie Brandenburg Page 29
  • Definitions Webster’s Dictionary Information “the communication or reception of knowledge or intelligence” Page 30
  • Definitions Webster’s Dictionary Ethics “the principles of conduct governing an individual or group (professional)" Page 31
  • Terms Puffery “exaggerated commendation esp. for promotional purposes” Buzz “a: RUMOR, GOSSIP b: to be filled with a confused murmur (the room ~ed with excitement” Page 32
  • Really? Blogs and YouTube Page 33
  • Targeting Kids Current Debates . The Ethics of advertising to young children. . The balance between the rights of an industry to promote its products & ideas and the role of Government in protecting the health of its citizens (particularly vulnerable groups). Page 34
  • Targeting Kids . The Ethics of advertising to young children. Page 35
  • Power Rangers Page 36
  • Video Games Page 37
  • AR Gaming Page 38
  • Targeting Kids .The balance between the rights of an industry to promote its products & ideas and the role of Government in protecting the health of its citizens (particularly vulnerable groups). Page 39
  • Regulation Tobacco Timeline on Ask Jeeves Page 40
  • Children’s Television Act Thank you Page 41
  • Future of AR John Estabrook Page 42
  • Speed Dating with AR Page 43
  • Hype Cycle for Emerging Tech Page 44
  • Google Trends: AR Page 45
  • Nokia’s Point & Find •Point camera at real world objects and plant virtual information tags. •Users can view each other’s tags on the phone screen – crowdsourcing an augmented reality. •“This year we’re feeling a real urgency to work on augmented reality because the hardware is finally catching up to our needs.” Rebecca Allen, director of Nokia’s research center in Hollywood. Page 46
  • LED Contact Lens •Scientists at the University of Washington have been developing a contact lens containing one built-in LED. •Eventually, more advanced versions of the lens could be used to provide a wealth of information, such as virtual captions scrolling beneath every person or object you see. Page 47
  • 5 Barriers to a Web That’s Everywhere 1. Spam and Security 2. Social and Real-Time vs. Solitary and Cached 3. The User Experience 4. Interoperability Thank you 5. Openness Page 48
  • Page 49
  • Artificial Intelligence and Business Intelligence Val Stella Matt Atkins Gloria Sanchez Rob Timmins Bob Mannherz Page 50
  • What is Artificial Intelligence? Val Stella Page 51
  • What Artificial Intelligence Is Not Artificial intelligence tends to be associated with artifacts like the Hal 9000 which are the product of Hollywood rather than the kind of thing that actually happens in the research labs of the world today Page 52
  • Definition of Artificial Intelligence The Association for the Advancement of Artificial Intelligence The scientific understanding of the mechanisms underlying thought and intelligent behavior and their embodiment in machines. Page 53
  • Definition of Artificial Intelligence Ray Kurzweil The ability to perform a task that is normally performed by natural intelligence, particularly human natural intelligence Page 54
  • Definition of Artificial Intelligence Wikipedia The study of man-made computational devices and systems which can be made to act in a manner which we would be inclined to call intelligent. Page 55
  • Alan Turing 1912 - 1954 Worked on breaking the German Enigma codes during WWII Turing’s theory of computation suggested 0’s and 1’s He foresaw AI, and proposed the Turing Test. Expected to be passed by computers by 2029 So far, no computer has fooled the judges by passing as a human Page 56
  • What does AI do? Narrow AI, Strong AI Used for logistics, data mining, medical diagnosis, communications, computer-assisted design systems, cruise control, servers, personalize d ads  AI flies and lands airplanes, guides intelligent weapons systems, trades on the stock market Page 57
  • Major Players & Costs Washington DC’s revolving doors Intelligent Systems Technology Inc. (ISTI), Russian physicist DARPA (Defense Advanced Research Projects Agency) Page 58
  • DARPA Project Lightweight robotic bugs could be carried by soldiers and used to investigate the terrain ahead, detecting enemy troops, minefields and other hazards." Page 59
  • DARPA Contracts Lockheed Martin has DARPA contract for $22 million for automating air traffic control Now testing Cormorant, a stealthy autonomous spy jet that starts and ends its mission 150 feet under water. Page 60
  • DARPA Contracts $23.7 million to IBM for Watson (picture) $50 million to BBN for machine reading program $22 million to Stanford Research Institute (SRI) Page 61
  • DARPA DARPA’s Revolutionary Prosthetics program Page 62
  • Ethical Concerns Need for caution US Army harrowing situation earlier this year Ethical & legal guidelines Page 63
  • Artificial Intelligence And now to my colleague Gloria and the Singularity Gloria Sanchez Page 64
  • Where is AI Heading? Singularity • It is the technological creation of smarter-than-human intelligence – We will get to a point where technical progress will be so fast that unenhanced human intelligence will be unable to follow it. Page 65
  • Artificial Intelligence Emulating Computer the human Science brain Method (use of cogno-science and computer science) By By 2050 2020-2030 Page 66
  • Narrow AI • Medical • Toys and Industry Games (Second Life) • Financial • Car Institutions Industry • Military • Phone Industry • NASA Page 67
  • Strong AI -Learns as he tries new tricks, travels the world, etc. -It has recognition technology ASIMO -It can run (up to 6 km/hr) Advanced Step in -It has network integration Innovative MObility Page 68
  • Business Intelligence (BI) Overview of the Discipline & Current Marketplace Presented by Matt Atkins Page 69
  • Define BI Today? “refers to a variety of software applications that analyze an organizations raw data and help extract relevant and useful insights” 2009 ProQuest LLC, “The Brain Behind The Big Bad Burger And Other Tales Of Business Intelligence” “skills, technologies, applications and practices used to help a business acquire a better understanding of its commercial context. BI technologies provide historical, current, and predictive views of business operations” Wikipedia Page 70
  • The BI Discipline • Consists of many related activities Statistics, Text & Data that include Mining Analysis & Querying statistics, text and data mining, analytical processing, queryi ng, predictive analysis and Reporting & forecast reporting Informed Decision Data Integration & Dashboards Making Page 71
  • BI Desktop Widget http://www.youtube.com/watch?v=bobZIke_CM0 Page 72
  • BI Marketplace • Marketplace has grown significantly in recent years! • Two clear segments – “Big Hitters” •Companies that sell proprietary enterprise wide software solutions – “Up & Comers” •Defined by companies using open source solutions Page 73
  • Big Hitters • Comprised of large database and software companies using proprietary platforms – IBM, Oracle, Microsoft, SAP, HP…… – Clients are large corporate customers which can shell out large dollars for enterprise wide solutions – Their current marketing efforts work to sell “comprehensive easy to use BI software solutions that integrate the power of analytics and data integration to share insights that power better business decisions” – Investment costs are driven “per-user” Page 74
  • Up & Comers • Companies building their enterprise solutions upon open source applications • According to Acutate survey taken to assess corporate acceptance of open source BI software, 31% expected to be using it soon • Their approach to market – avoid “lock in” Page 75
  • Up & Comers • By their very nature, open source projects are fundamentally community-oriented • They depend on the support of a community of developers through culture and necessity, have no interest in establishing little empires of dependency • They are based on open rather than proprietary standards. – If you want to mix and match parts of your BI setup with some of your existing software packages or with some in-house development, you are likely to find it much easier to do by committing to open source rather than proprietary BI software. Page 76
  • Up & Comers to Watch • Pentaho • Jaspersoft • How do they make money??? – Charge for specialized add-on modules to the core product which is distributed for free – Sell support for the product and “higher end editions” Page 77
  • Where are we heading? • Open Source cloud-computing based applications • Seems we’re at a similar point as the transition from Web 2.0 to 3.0 • Growing recognition of Software as a Service • Pay-as-you-go Page 78
  • Open Source Cloud BI http://www.youtube.com/watch?v=aYDZdvCpWfY Page 79
  • AI-BI Sales Intelligence Rob Mannherz Page 80
  • Definitions Customer Relationship Management (CRM): using available information sources to effectively manage customer relations throughout the sales process. Data Mining: “deriving high-quality information from text” (Wikipedia under text- mining) Page 81
  • Sales Intelligence SI solutions provide unique insight into customer buying patterns for high volume, low profit sales. By automatically analyzing and evaluating these patterns, SI pro-actively identifies and delivers up-sell, cross-sell and switch- sell opportunities. Most good SI products will inform you of potential customer drift issues. Page 82
  • Decision-Making Search Engine Bing is a search engine that finds and organizes the answers you need, so you can make faster, more informed decisions. http://www.youtube.com/watch?v=0wYrxHrsoXs &feature=player_embedded Page 83
  • Targeted Advertising http://www.amazon.com/ www.google.com Page 84
  • Searching in Marketing Well-placed marketing has become difficult to penetrate. eg. Villanova U online Page 85
  • How will we use “Business Intelligence?” Branding and Marketing Strategies Delivery and Distribution Customer Service and a Unified Voice Voice Of Customer Page 86
  • Salesforce Cloud computing for CRM www.salesforce.com Salesforce for GoogleApps http://www.youtube.com/watch?v=E-o0QmS5TzM Mashable Salesforce for Twitter http://mashable.com/2009/09/08/service-cloud-2/ Page 87
  • 2006 CRM Installations Vendor Percent of implementations Siebel (Oracle) 41% SAP 8% Epiphany (Infor) 3% Oracle 3% PeopleSoft (Oracle) 2% salesforce.com 2% Amdocs 1% Chordiant 1% Microsoft 1% Metus Technology 1% SAS 1% Others 15% None 22% The above table lists the top software vendors for CRM projects completed in 2006 using external consultants and system integrators, according to a 2007 Gartner study. (from Wikipedia, Customer Relationship Management.) Page 88
  • Social Media in Marketing Beginning in 2007, the rapid growth in social media and social networking forced CRM product companies to integrate "social" features into their traditional CRM systems. Some of the first features added are social network monitoring feeds (i.e. Twitter timeline), typically built into the system dashboard. Other emerging capabilities include messaging, sentiment analysis, and other analytics. Many industry experts contend that Social CRM is the way of the future, but there are still many skeptics. Top CRM minds agree that online social communities and conversations carry heavy consequences for companies. They must be monitored for real-time marketplace feedback and trends. Page 89
  • Brand as a Conversation According to Lloyd Salmons, first chairman of the Internet Advertising Bureau social media council "Social media isn't just about big networks like Facebook and MySpace, it's about brands having conversations."[1]. (Wikipedia “social media marketing”) Your brand is a conversation. Make it a good one. A brand is a conversation between a company and its customer tribes. That’s a simple idea, yes, but it’s also one that’s very difficult to deliver on. (Advertising for Peanuts) Page 90
  • Brand as a Conversation And just what do we mean by a “conversation”? First a trip in the way-back machine: For a very long time, businesses focused on products and sales. And they thrived. Their marketing flowed in one direction, from company to consumer: selling, advertising, and generally imposing their brands on a hungry audience of consumers. A one-way conversation. Then: Change. Markets became crowded with competitive choices, and interruptive advertising became pervasive. Businesses no longer thrived. The marketing techniques that grew out of their sales-and-product focus stopped working. Today, the volume of product choice is enormous, and the media is saturated. Page 91
  • Brand as a Conversation All brands, big and small, tell a story. A brand story stays out of the way unless people seek it out. A brand story that is present in places where people are looking for it is well received. A brand story gets customer tribes talking, both about the company and to the company. A brand conversation has integrity. A brand conversation takes place anywhere the company touches its customer tribe, so is therefore about much more than the marketing media, but also the product offering, customer service, consistency and integrity. Page 92
  • Zappos - a conversation What do the numbers say about Tony's Twitter activity over the past 30 days? Despite having 43,000 followers, Tony has relatively little activity on Twitter. He sent only 4 tweets a day on average despite receiving 50 tweets a twitter.zappos.com day Only 30% of his tweets were @replies (relatively low conversation quotient) http://twitter.com/zappos 41% of his onbound tweets contain links, aimed at driving people to his blog where he promotes the people, products and culture of Zappos UPDATE: Tony responded to me after reading this blog post and revealed an added dimension that is a very important piece of the puzzle: Private conversation vs. Public conversation. Here's his response: "Thanks for the great writeup. One thing I wanted to point out is that most of activity through Twitter is actually through DM's (direct messages), so they won't show up on my Twitter timeline. For the month of January, I sent out about 2000 DM's I send DM's instead of @ replies so that it doesn't clutter up the timeline when you go to http://twitter.com/zappos It would be great if the conversation quotient took DM's into account (if someone sends me an @ message, I reply via DM which I would still count as a conversation), but Twitter doesn't make that information public."rmation Page 93
  • Collaboration Calendar Sync http://www.google/com To Do Lists http://www.toodledo.com Page 94
  • Project Management Online Page 95
  • Travel 旅行 http://ekitan.com www.kayak.com www.orbitz.com Page 96
  • Alternative Marketing Venues craigslist http://www.craigslist.org/about/sites http://www.rakuten.co.jp/ Page 97
  • BI in CRM Customer Relations Management Rob Timmins Page 98
  • BI CRM Objectives • Measure and Manage customer lifetime value • Key to sustain competitive marketplace value • Need robust/integrated technology • Employees to manage customer relations • Integrate these values to create a quantifiable equation and understand components that drive CRM Page 99
  • BI CRM Implications • Old way: Manual searches and data entry • Finding documents only by words occurring in the documents • New way: Search web based on meanings and context rather than specific words • Semantic web • Large data sets facilitate social network analysis or counter intel • Stepping stone to communication machine to machine, symbiosis, then singularity http://www.youtube.com/watch?v=34ag4nkSh7Q Page 100
  • Key to Customer Spending • Measure lifecycle of long life customers • Improve relationship marketing decision making • Focus on new customer’s increasing /decreasing future spending from initial purchase info • Probability and statistic pattern learning algorithms • AI/BI interface to maximize data collected Page 101
  • Customer Lifecycle • AI allows for much more accurate BI in identifying the lifecycle of long life customers Page 102
  • AI/BI vs. Customer Lifetime Value • Company looks to balance sheets • Often ignore soft assets (customers) • Most valuable asset • Company’s culture vs. customer relations • Most customers are poorly managed • Key to acquiring and cultivating long term highly profitable customer relationships is: Page 103
  • Understanding This Relationship • Quantifies and predicts profitability for customer segments, business units, products and services • Develop actionable programs to maximize profitability Page 104
  • Value of Customer Asset • Value of individual transactions • Frequency/recency of purchases • Cost of service • Need to generate rich database of customer needs and behavior • Invest in BI SaaS, OSS, TWDI, cloud computing, text/data mining etc.. Page 105
  • Cost of a Customer • Hardest most expensive sale is first one • Initial cost of customer and profit generated vs. long term potential Page 106
  • Transaction Value • Historical customer behavior: most important information • Understanding how the customer interacts with channels and consumes goods and services TODAY is key to FUTURE activity Page 107
  • 3 Key Variables • Frequency and recency • Transaction size • Customer churn rate (loss/attrition is greatest cost to companies) – Lost revenue – Difficult to reacquire Page 108
  • Evolving Habits • Customers mature and buying habits change • Increase in value if measured and managed appropriately • Tremendous cross-selling and up- selling potential • Can reduce churn rate by increasing customer satisfaction Page 109
  • Aligning Operations • Build customer centric operations • Maximize customer lifetime value • Erode profits with poor distributions or product development w/o customer in mind • Data mining would provide info to do this right Page 110
  • 3 Elements of Success • Integrate channel systems • Marketing and incentive programs • Product design strategies Page 111
  • Integrating Channels • Balance customer preferences with costs of service • Coordinate multiple channels in the customer interaction process • Roll of each channel to be clearly defined and measured and managed • Value of each subsequent customer interaction will increase to both parties Page 112
  • Multi-channel Strategy Works! • JC Penney proved it. • 1999 internet shoppers spent $121/yr • Retail only $194/yr • Catalog only $242/yr • Integrated with all three, over $1000/yr Page 113
  • JC Penny results • By integrating channel operations to share customer information with all departments, store and catalog profits soared 83% in the third quarter 2003 year over year • Integration has been key to JC Penney’s continued success Page 114
  • Customer incentive programs • DRIVES REVENUE • Invest heavily in marketing efforts (incentives, branding, discounts) • Can be a significant profit drain • When armed with in depth, reliable BI on revenue per customer, judicious, targeted use can increase profit per customer • Create tiered customer investment programs to match current and potential return generated by the customer Page 115
  • Product Design Strategies • Meet needs of customers • Distribution channel system • Dell computer customization • UPS/Dell repair facility at SDF • Levi Strauss individual design • Engenders customer loyalty Page 116
  • Role of Technology • Key factor to measure/manage lifetime value • Captures and stores customer interactions across all company touch-points • Establishes more insightful customer segmentation schemes • Facilitates a more effective dialogue and experience for each relationship Page 117
  • CRM Technology • Facilitates gathering and analysis for profiling and planning (AI/BI interface) • 1) Resources that interact with customers gather important customer transaction, preference and profile data through data capture fields and processes • 2) Analytical engines use pattern learning algorithms, probability, and statistics formulas (AI) to segment, identify, and analyze trends, customer behavior, and preferences http://www.youtube.com/watch?v=dp-D7aHzr6Q Page 118
  • CRM Solution • Each channel has a defined roll • All channels are seamlessly integrated • Can measure and manage all channel resources based on fact- based real time reporting Page 119
  • Customer Management • Extract true value from customer • Must build process and culture to continuously monitor and manage this critical success factor • FedEx’s focus Page 120
  • Conclusion: CRM BI • Measure and Manage customer lifetime value • Key to sustain competitive marketplace value • Need robust/integrated technology • Employees to manage customer relations • Senior management buy in essential • Process solutions to enable in depth, rapid customer data gathering and analysis • Exploit operational competencies to manage and grow customer value (historical, anticipated and network value) • Integrate these values to create a quantifiable equation and understand components that drive CRM Page 121
  • Questions? Page 122