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Customer analytics - now it's personal


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Digital forces led by social, mobile and data technology shifts are fundamentally changing how we live, work and interact. The resulting explosion of data creates a new economic asset that has become the basis of significant opportunity, fueling analytics initiatives that infiltrate every single business interaction with customers. Business leaders are focusing on reshaping the way they make decisions. Business analytics is about weaving intelligence into the fabric of business. If leveraging geospatial, emotional and highly contextual data can push interactions to the edge of uncomfortable business behavior; they can also provide customers with unsurpassed service benefits and create intimate relationships that rebuild trust and loyalty.

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Customer analytics - now it's personal

  1. 1. © 2015 IBM Corporation Customer Analytics: Now it’s personal!
  2. 2. © 2015 IBM Corporation Of mobile users keep their device within arm’s reach 100% of the time In the last 10 years the average attention span has dropped from 12 to 5 minutes The average office worker checks his/her email box 40 times an hour - once every 1.5 minutes 2
  3. 3. © 2015 IBM Corporation Today’s “empowered customer” puts businesses to the test 4in 10 Smart phone users search for an item in a store 86% use multiple channels 4-5x more than average is spent by multi-channel buyers 78% of consumers trust peer recommendations 58% are more price-conscious today than a year ago 75% do not believe companies tell the truth in ads Source: Sources of statistics from “Smarter Commerce Stats and Facts” 80% of CEOs think they deliver a superior customer experience 8% of their customers agree 3
  4. 4. © 2015 IBM Corporation Digital disruption is not just about incremental productivity gains Processes & Data Process and content digitization - along with the resulting data - is disrupting how traditional processes are delivered New business models are reshaping processes, companies and industries Enterprises Enterprises are creating new business models, becoming ISVs and adopting to changes in value streams Industries Industries are being disrupted and transformed as processes, data and customers begin to connect freely across boundaries 1. Analytics becomes central & pervasive while data fuels business outcomes 2. Increasing & diversified competitive pressures (technology, data & services) 3. Analytics skills are scarce and expensive & not likely to be fulfilled in the next 5 years The Analytics Marketplace is Radically Transforming Organizational tensions are fueled by Big Data Line of Business IT Accuracy & Security Value & Speed 4
  5. 5. © 2015 IBM Corporation Traditional Internal data warehouse, transactions, descriptive Distributed datamarts, spreadsheets Emerging Unstructured notes, logs Social Media pulse, emerging issues Survey Research attitudes, opinions Sensors volume-velocity-variety-veracity Sense-making LEARN 5 Big Data & Analytics: the value is in “actionable” New Mix of Data Exploration Recommendations Auto-Analysis Unified UX Redefining the Experience people, process DECISIONS Mobile Dashboard InsightWhat-if? differentiated analytic solutions Automate Embed “in the business moment” Plan,Simulate Collaborate Case MgmtDecision Mgmt “consumer oriented agile insight” ACTION Actionable insight “data is the new oil”
  6. 6. © 2015 IBM Corporation 6 • Fast Data – Real-time analytics - from Big Data to Fast Data • Exogenous & Right Data – The Internet of Everything (e.g., things, social, environment…) • Decision Management 3.0 – Analytics on a need-to-know basis • Emotional Data – No (buying) decisions without emotions Advanced themes in advanced (customer) analytics
  7. 7. © 2015 IBM Corporation GlobalDataVolumeinExabytes Sensors (InternetofThings) Multiple sources: IDC,Cisco 100 90 80 70 60 50 40 30 20 10 AggregateUncertainty% VoIP 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2005 2012 2017 By 2017 the number of networked devices will be more than double the entire global population. Social Media (video, audio and text) The total number of social media accounts exceeds the entire global population. Enterprise Data The uncertainty is growing alongside its complexity 7
  8. 8. © 2015 IBM Corporation The problem is not really Big Data… it is Fast Data 10/07/2014 Time LagtimeRealtime Operational data Big data hourssecondsmilliseconds Stream Analytics Real-Time Analytics Operations Analytics Batch Analytics OLTP: On-line Transaction Processing OLAP: On-line Analytical Processing RTAP: Real Time Analytic Processing Complex Event Processing In-Memory DB OLTP Reporting OLAP RTAP Analytic “on flight” Map Reduce Batched (NoSQL) Size Gigabyte Terabyte Petabyte 8
  9. 9. © 2015 IBM Corporation Most of the data you might need… you do not own 60% of determinants of health Volume, Variety, Velocity, Veracity 30%of determinants of health Volume 10% of determinants of health Variety Clinical data Genomics data Exogenous data (Behavior, Socio-economic, Environmental, ...) 1100 Terabytes Generated per lifetime 6 TBPer lifetime 0.4 TB Per lifetime Source: "The Relative Contribution of Multiple Determinants to Health Outcomes", Lauren McGover et al., Health Affairs, 33, no.2 (2014) 9
  10. 10. © 2015 IBM Corporation Expanding your data universe 10
  11. 11. © 2015 IBM Corporation Operational AnalyticsCustomer Analytics Acquire Grow Retain Manage Maintain Maximize Threat & Risk Analytics Monitor Detect Control • Claims fraud • Credit-card fraud • Insider threat • Signals analysis • Cyber security • Predictive maintenance • Assortment planning • Condition monitoring • Reverse logistics • Allocation management • Up-sell/cross-sell • Market basket analysis • Churn prevention • Customer segmentation • Brand Monitoring Smarter solutions 11
  12. 12. © 2015 IBM Corporation Customer engagement framework with OCM Deliver engaging messages and capture reactions 12 Learn, Optimize and tune iteratively Collect data that augments each customer profile Build and integrate assets, offers, promotions for customer engagement Analyze data to find actionable insights Manage budgets, processes & measure results Decide on the best offer, action or communication for each customer
  13. 13. © 2015 IBM Corporation In customer analytics our focus is on the customer experience Research Product Purchase Product Use Product Get Customer Service Advocate Product Up/Cross Sold Marketing Sales Support/Services Feedback Management Social Intelligence Advocate Use Research Purchase 13
  14. 14. © 2015 IBM Corporation Customer analytics complements the business cycle Customer Analytics ActionInsight •Process Centric •Action •Target to Cash • Data Centric • Insights • Integrated Consumer Experience Customer Analytics complements Customer Engagement Solutions Customer Operations The Business Cycle The Customer Cycle 14
  15. 15. © 2015 IBM Corporation Condensing data sources to reduces uncertainty through context Customer at Mall Customer in Store #42 Correlation Data finds Data Sense Making Fact Discovery Son Mother Birthday Date Spatial Reasoning A & Temporal Reasoning & Corroboration (Evidence Combination) ETC. Michael San Jose, CA Credit Loyalty Influencers Buying DSLR today ! Buying DSLR today ! Intent CONDENSE $999 $560 In-Store Pricing And Discounts Maximum Context For Minimum Uncertainty $999 $560 OR Buying a DSLR today ! NY 15
  16. 16. © 2015 IBM Corporation What are the interests of a specific customer? What products are relevant to what interest groups? How does context affect customer interest? Which product should a customer be offered? (e.g., predicting future customer propensities to drive channel optimization) 10/07/2014 16 Fast data: capturing each customers in context 16© 2015 IBM Corporation #ibmamplify
  17. 17. © 2015 IBM Corporation Fast Data… at a restaurant near you… Targeted offers piloted by the marketing professional Decision rules matrix controlled by marketing Propensities determined through predictive analytics models 17
  18. 18. © 2015 IBM Corporation 18 • Fast Data – Real-time analytics - from Big Data to Fast Data • Exogenous & Right Data – The Internet of Everything (e.g., things, social, environment…) • Decision Management 3.0 – Analytics on a need-to-know basis • Emotional Data – No (buying) decisions without emotions Advanced themes in advanced (customer) analytics
  19. 19. © 2015 IBM Corporation 19 + + = An opportunity to think and act in new ways - economically, socially and technically. Instrumented Interconnected Intelligent Smarter Planet Premises 19
  20. 20. © 2015 IBM Corporation From Customers + Machine Behavior… predict & optimize Machine_1 Location_1 Central Database • Maintenance history • Location • Daily usage data • Years of service… Identify key components propensity failure Identify key components propensity failure Machine: Hydraulic Arm Location: Section 022 floor 7 Expected Error: 79012 (79.6%) Associated part:: 7097 Part description: Arm Rotator Repair planning optimization • Crew scheduling • Repair cost by Location • Repair Person Availability • Display in Map • Optimal scheduling Generates revenue analysis Generates revenue analysis 20 Gather failures, associated actions & areas + optimize repair schedule Gather failures, associated actions & areas + optimize repair schedule Trigger repair rules associated to the probable failure Trigger repair rules associated to the probable failure Understand clients traffic patterns and revenue segments Understand clients traffic patterns and revenue segments 1 2 3 4 Pre-emptive Maintenance Ticket Spender model Business Rule Schedule Repair Planning Revenue Analysis
  21. 21. © 2015 IBM Corporation The Internet of Things landscape – at a customer near you 21 Source: Goldman Sachs Global Investment Research
  22. 22. © 2015 IBM Corporation Which One Is it? Chef (Marmiton) Comedian (MySpace) CAO (IBM) Apocalypto (WoW) Captain Picard (ST:TNG) User Consumer Customer Participant Influencer Resonance (x,y,z…) The Trek Tribe In search of soul mates… the new tribes 22
  23. 23. © 2015 IBM Corporation • People do not make decisions without emotions • Drivers: lasting fun, iconic simplicity, emotional feedback • The tipping point of intimacy: “Starting to draw circles, not lines!” • “People do not buy games, they buy experiences!” 23 No decisions without emotions… fierofiero curiositycuriosity excitementexcitement amusementamusement Hard Fun Emotions generated: • frustration • relief Easy Fun Emotions generated: • wonder • curiosity Serious Fun Emotions generated: • zen focus • relaxation People Fun Emotions generated: • admiration • naches
  24. 24. © 2015 IBM Corporation Example: at banks, emotionally charged interactions (e.g., replacing a stolen credit card or negotiating mortgages as opposed to buying travelers’ checks) can have dramatic impacts on the organization’s bottom line (1) Source: Survey of 2,229 large banks customers - The McKinsey Quarterly - “The moment of Truth in Customer Service” 87% 72% Moments of truth 24
  25. 25. © 2015 IBM Corporation … One more thing 25
  26. 26. © 2015 IBM Corporation Campaign "Intrusive" 1%-5% Response Event-Driven "Convenient" 5x Success Real-Time "Appropriate" 10x Success Beware of the “creepy factor” Too SlowToo Fast Cost-Benefit Response Time + - 0 Creepy IdealIdeal Usable IrrelevantIrrelevant Event: Customer Response: 26