DMA07 Presentation_Smittal_15Oct2007_DMA

Copyright © 2007, Direxions Marketing Solutions Pvt Ltd
1
Who’s agitating my
dots?!
Thoughts on the GIS-CRM Convergence

2
That’s us!
• Kevin Almeida (Pizza Hut)
– GIS Manager/Customer
Analytics
– 15+ years of IT, Finance,
CRM and GIS programs
• Sandeep Mittal (Direxions)
– Business Head for
Analytics/ Loyalty
– 10+ years in Loyalty,
analytics, and web based
marketing

3
Our Road Map in 5 Acts
ACT 1: Knowing your Customer (The CRM story)
ACT 3: Agitating your Dots (Where CRM and GIS meet)
ACT 2: Meet Dot (The intro to GIS)
ACT 5: Getting your Dots (Starts and Ends)
ACT 4: Dots in Action (A case study)

4
Act 1: Knowing your Customer
Who is she?
WHERE is she?!

5
The key to successful CRM :
1. Customer knowledge
– Capturing it, Leveraging it
– Wrapping some action
around all the concepts
2. Customer Centric
Delivery
– Customer centric product
and service delivery
– Satisfaction and feedback
monitoring
CRM and the art of knowing your customer
Aaargh… I
wanted a
BLUE guitar
darn it!

6
How do we “know” the customer?
Profile
Dispositio
n
Behavior
Transaction
Demographi
cs
Psychographic
s
Feedback
Complaints
Purchases
Is it this sketchy?

7
Analytical CRM answers these…
Is a Platinum customer
Responds to Dollar off campaigns?
Likelihood of Churn?!
What do I cross sell now?
The Lifetime value
The RFM scores
Participated in the MGM
No complaints unresolved
Here’s the products bought, services availed
Propensity to respond to a mailing?
If I buy those
shoes today
I’ll get a 25%
coupon…

8
A missing link
How often do we wonder:
WHERE is my customer?

9
The spatial angle
• Where do they live?
• Where do they buy?
• Are we strategically located
so as to create a “most-
easily” accessed point of
contact ?
• What is the potential of the
catchment area
• What happens en-route?
• Where is the competition?...
Ah!
• Where are the “hot-spots” I
need to look out for as a
marketer

10
Act 2: Meet Dot
An introduction to crucial GIS concepts

11
Meet thy Dots
• Customers
• Prospects
• Stores
• Competition
• Salesmen
• Anything else?

12
Geo-coding for Dots
• What is lat/long ?
14841 N. Dallas Parkway,
Dallas, TX 75254
digitally speaking
-96 49’ 25.442832” longitude
32 57’ 2.001636 “ latitude

13
Of Dots and Digitized Maps
• The Dots exist on
digitized maps
• Anchored in place with
a Latitude and
Longitude
• GIS Software holds it
all together
• Data layers bring the
dots to life

14
Beyond Dots: Lines, Shapes, Colors
• Routes & Distances
• Polygons and shapes
• Thematic maps

15
Act 3: Agitating your Dots
7 ways to put the GIS-CRM
Convergence to use

16
1. Metrics on Maps
• Data with a spatial dimension is best visualized
on a map
• See your enrollment, churn, activity levels,
campaigns, redemptions
• See discrete points, or thematic maps
• Use maps to enhance data visualization, not
substitute existing dashboards
• Overlay data layers to “see” correlations

17
Zip Code Customers Sales
400009 440 197,288,952
400074 182 71,426,877
400015 129 45,382,403
400001 127 33,539,059
400071 80 20,069,863
400037 68 8,679,183
400086 68 15,304,879
400078 66 9,941,117
400082 57 5,945,998
400059 57 13,100,576
400070 56 14,463,149
400033 54 4,261,929
400083 50 7,363,235
400072 50 4,762,769
400080 48 6,194,060
400092 44 2,876,194
400010 44 15,025,677
400003 41 20,791,160
400066 41 8,095,055
400068 39 3,561,716

18

19
And then… Seeing more
• See why certain outlets acquire new customers
• See why there’s increased churn in some
territories
• See where satisfaction levels are high
• Map your Cross sell successes
Bring the WHERE into your customer analytics

20
2. Decentralized decision making (SLM)
• Show your store managers their territory, their
customers and competition
• Train them to use GIS for optimization of
deliveries, sizing and staffing, local promotions

21
A typical store level application
• Where do my best customers come from?
• Do they come here from home or from office?
• What can I do en-route?

22
3. Assigning customer ownership
• Assign customers to outlets
and territory managers
• Change territory
boundaries easily, re-map
customers to new outlets
• Measure and reward
channel based on
performance of assigned
customers
• Eg. Subscription marketing

23
4. Partnership marketing - a possibility?
• location relevance is often
overlooked when making offers
• Make offers that are close to the
home/ office of your customers
• Suggest alternatives to those out
of reach of the partner network
• Can you suggest offers that lie
en-route?
– Requires front end staff to be GIS
equipped

24
5. Customer segmentation
• Map your customers
• Apply segmentation rules
• Profile territories based on your segmentation
rules
• See geographical variations in segment
distribution
• Build hypothesis for local acquisition strategies
and promotions

25
Localize rules based on segmentation
• Given that territory A has a particular customer
profile, run the cross-category discount campaign
• In territory B run the weekend double points offer
High LTV,
Frequent
Frequent, Hi
Value
New
Customers
Lapsers

26
6. Churn management
• Track customer churn
• Build churn models
• Score your customer database
• Customer database is geo-coded (Lat-Long)
• See territories where customers with high
probability of churn live
• Implement churn management or win back
campaigns
• Catch reasons for churn based on location

27
7. Cross/ Up selling
• Build market basket models, establish
associations
• Establish location-specific up sells
• When customers call in, see them on a map
• Based on the location, apply cross/ up sell

28
Revisited…
• Metrics on Maps
• Decentralized decision making
• Assigning customer ownership
• Partnership marketing
• Customer Segmentation
• Churn management
• Cross/ Up selling
• Many more…

29
Act 4: The Dots in Action
A retailer in India strategically wishes to
drive Frequency/improve quality scores

30
An all-India view

31
Mumbai: Population > 25mn

32
Bandra, an up-market suburb

33
Mapping outlets in Bandra
• Mapping one’s
retail network

34
Mapping all organized retail

35
Customer households mapped
• Thematic map
based on
customer
household
density

36
RFM Scores mapped
• Thematic map
based on
customer RFM
scores in the
location

37
Identifying the target locations
• Regions of high density, low RFM

38
Drilling down to individual outlets

39
Act 5: Getting your Dots
Starts and Ends on the GIS-CRM
Convergence picture

40
Leveraging the GIS-CRM Convergence
• Visualization
– GIS can be used to depict
Marketing related information on
a map
• Analysis
– Layering and Analysis of spatial
data can throw up correlations
• Planning
– GIS can show data and
relationships that can lead to
better planning

41
What it takes
• GIS Software
• Digitized maps
• Geocoding of your data
• Data overlays
(Demographics and
psychographics)
• Integration with analytics

42

43
The GIS - CRM convergence
Better insight and customer centric delivery in
todays world where location matters

44
Questions?
Sandeep Mittal smittal@direxions.co.in
Kevin Almeida kalmeida@direxions-usa.com
www.direxions.co.in

DMA07 Presentation_Smittal_15Oct2007_DMA

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