4. thurs 130 215 trichel cutten - advanced analytics workshop

Deloitte’s Analytics
Symposium 2010
Customer insights and
analytics workshop

Jonathan Trichel
Christine Cutten

October 2010

Agenda

•Our perspective on customer insights
and analytics
•Deep dive: The agency of the future
•Customer insights and analytics case
study
•Our approach to customer insights and
analytics

1 Customer insight & analytics workshop Copyright © 2010 Deloitte Development LLC. All rights reserved.

analytics
Our perspective

Our clients are now asking the right questions
about customer insights and analytics
• How do we re-engage our core customers?
An education services client
• How do we sharpen our focus to attract new customers?
reduced average cost per acquired
• How can we leverage cutting-edge tools to strategically customer by 55% through marketing
target customers and reduce marketing costs? mix modeling

A telecom client generated an • How do we speak to the heart of customer wants and needs?
additional 6% of revenue after
developing a customer propensity
• How do we optimize pricing to maximize profit?
model • How can we better tailor product assortments locally?

• How do we improve customer retention? A retail company improved online
site experience through an
• How can we improve our online customer experience?
analysis of more than 12 million
• How do we allocate resources more effectively to improve the online orders to identify highly-
service experience? relevant item-order propensities


Customer Insights & Analytics is the basis for improving
experience in sales, marketing, and customer service

 Sales
‒ Customer Segmentation
Customer ‒ Online Site Usage and Experience Analysis
Experience ‒ Sales Performance Analysis

 Marketing
Customer Service
‒ Voice of the Customer Analysis
Marketing

‒ Customer Behavior & Predictive Models
Sales

‒ Campaign Targeting & Marketing
Effectiveness Measurement

 Customer Service
‒ Customer Profitability & Cost to Serve
Customer Insights & Analytics
‒ Customer Experience Analysis
‒ Service Performance Analysis


As an organization’s analytical capabilities mature so
does the depth of insights they deliver

• Customer • Customer • Behavioral analytics
insights (e.g., analysis • Predictive analytics
counts, • Context and and modeling Innovation
profiles, etc.) relevance • Customer attrition
• Marketing KPIs modeling
effectiveness • “Slice and • Fraud detection and
Strategic Impact

Dice” prevention
functionality
• Data mining and
Analytical visualization
Insight • Real-time behavioral
analytics
Query/Ad Hoc • Targeted marketing
Reporting • Offer management
Exploration
• Price optimization

Data Information Knowledge Insight and Foresight

Investment in Business Analytics


analytics
Marketing and the Agency of the Future

The changing marketing landscape has
increased the need for advanced analytics
An increase in
The correlation between
marketing channels is
advertising spending
increasing the
and revenue is
complexity of resource
changing
allocation

Why does my
marketing
organization need
advanced analytics?

The effects of a primary New forms of
marketing channel on advertising are
the efficacy of resulting in new
secondary channels metrics to be
are growing analyzed


A turnkey marketing platform will deliver an effective
campaign and maximize the return on investment

Marketing Financial Plng and Budgeting Marketing Financial Mgt and Reconciliation

Strategic and Customer and Marketing Marketing
Competitive
Financial Market Procurement Financial Financial
Assessment
Objectives Insights Accounting Reporting
Creative Successful
Positioning Marketing Marketing Budgeting and Commitments
Marketing Campaign
Accruals spend
Objectives Planning Approvals and Invoices
optimization

Campaign and Creative and Production Management Asset Asset
Activity Plng Management Distribution

Value Project
Agency Calendar Asset
Proposition Management
Management Management Management Global
Development (workflows)
Distribution

Brand Media
Production Regional and Maximum
Selection and
Essence Buying
Localization Print on ROI
Demand
Campaign and Content Creative
Activity Development Development Collaboration
Planning

Campaign Management

Database Multi Channel
Campaign Segmentation Customer Calendar
Marketing and Execution
Management and Targeting Experience Management
Data Mining (Web, Direct, Others)
Customer Campaign
Insights Marketing Effectiveness Reporting Feedback
Advanced and Cross-Functional Analytics:
Effectiveness
Financial, POS, Customer Service, Media Dashboards Web Analytics
Reports
Mix Modeling


Key questions for each category can help marketing organizations
prioritize opportunities to address potential service gaps

Marketing Financial Planning and Budgeting Marketing Financial Mgt and Reconciliation
• Who do I target?
• Where is my money?
• What is my strategy?

Campaign and Creative and Production Management Asset Asset
Activity Planning Management Distribution
• What are the best value proposition?

• What are my • What assets are most effective?
major Production
campaigns? • How do I leverage them?
• Am I on time?

Campaign Management

• Am I getting a return on my targets?

Marketing Effectiveness Reporting
• Can I predict where I should target next?


Leveraging a 360-degree view of marketing data in an
integrated approach can enable a competitive advantage
Marketing Financial Planning and Marketing Financial Management and
Budgeting Reconciliation
• Primary and secondary customer
Strategic and
Financial
Customer and
Market
Competitive • Procurement
Pricing/rate information Marketing
Marketing
Financial Financial
Assessment
dataObjectives Insights
• Finance and accountingReporting
Accounting
data
• Market research
Marketing Marketing • Commitments
Spend data (categories,Marketing
vendors,
Budgeting and
• Competitor dataPlanning
Objectives
Approvals and amounts)
and Invoices
Accruals spend
optimization
• Budgeting data • Contract information

Consolidated Data and
Analytics
Campaign Planning and Production Asset Management
Management • Single view of the customer
and Distribution
•
Media • Accurate assessment of
Media rates Selection and • Traditional and digital asset
Buying marketing performance Print on
• Segment information information
Demand
• Efficient planning and
• Target lists Campaign and • Catalog data
Activity budgeting
• Scheduling information
Planning • Tracking information
• Maximized buying power
over marketing suppliers

Campaign Management Marketing Effectiveness Reporting
• „Voice of Customer‟ data • Financial performance data
• Historical campaign information • Sales data
• Advanced and Cross-Functional
Sales and marketingFinancial, POS,
Analytics:
databases • Campaign effectiveness metrics
Dashboards Web Analytics
• Customer Service, Media Mix
Channel information Modeling
• Economic data


Tying it all together will require advancements in the
underlying marketing capabilities
Marketing Strategy Marketing Organization and Capabilities

• Customer insight driven • Shared services in usable
segmentation and messaging areas (e.g., Advertising,
• ROI based, proactive portfolio Market Intelligence, Web
driven approach Marketing, and Customer
Analytics)
• Optimized partner collaboration
and co-marketing • Outsource low value services
(e.g., Database Management,
• Multichannel marketing
Organization and Campaign, Event Execution,
approach optimizing Web and Strategy
Capabilities and Approval Processes)
social media
• Well-defined marketing
career model

Marketing Tools Marketing Processes

• Automated marketing • Closed looped marketing
approval and execution activities linking market
processes Tools Process insights with strategy and
• Collaboration and execution
communication tools for • Fewer redundant steps to
cross-functional alignment improve efficiency and time to
market
• Consistent steps for approval
submissions to reduce errors


analytics
Case study

Customer insights and analytics case study:
Large insurer — Current situation
• To differentiate themselves, our client is
Industry changes are pushing insurance providers
making a significant investment to
to build capabilities that deliver higher
personalization at a lower cost
improve their analytics capabilities
• Deloitte has been working with the
client on a multi-year program designed
to enhance identification, creation, and
Slow industry
delivery of analytics capabilities
growth
• The goals of the program are to:
Commoditized
Increased – Increase effectiveness of sales
product
transparency activity
offerings Insurers
choosing to
– Improve efficiency of insurance
compete on operations
personalization Shifting – Support executive decision making
Pricing pressure
channels for
from low-cost – Improve knowledge and adoption of
customer
insurers analytic capabilities
interactions
Increased – Increase retention as a result of
marketing improved customer satisfaction
spending


Large insurer — Scope and approach
• Create a business case and program roadmap to support our client‟s
Business Case and multiyear analytics program
Roadmap
Development • Identify future-state requirements for key resources, technologies, and
business processes and map those against current capabilities

• Develop business requirements for a multichannel insight delivery capability,
Analytic Insight including redesign of sales and service processes
Delivery
• Use industry leading practices and leverage strong internal capabilities
across the enterprise to develop requirements

• Design future-state operating model for an Analytics Center of Excellence,
Analytics Center of including organizational and business process design
Excellence
• Assess existing analytics functions against future-state design, and create
roadmap to close gaps in operating model


Large insurer — Insight delivery

Identify Create Deliver

Identify potential Research, Test, and Pilot Online
research topics

• Conduct
investigative • Test outputs
Direct
analysis
• Design and
Analytical • Formulate execute pilot
Research hypotheses
• Solicit and
Leads • Identify incorporate
analysis feedback Agent
method
• Build predictive
model and tool

Incorporate feedback


Large insurer — Value delivered
• Identified future-state requirements for key capabilities and aligned
Successful Program business and technical functions with future-state vision
Execution
• Developed a business case and program roadmap to help marketing
department sell a multiyear analytics program to the enterprise

• Improved delivery and adoption of actions identified by advanced analytic
Improved Sales and techniques to improve sales and customer service functions
Service Effectiveness
• Improved policy retention by 300 basis points and increased acquisition
rates on abandoned quotes by 200 basis points

• Developed blueprint to transform existing analytics functions into a Center
Improved Delivery of of Excellence that served entire enterprise
Analytical
Capabilities • Identified duplicative analytical activity in enterprise to be included in the
Center, improved quality, efficiency and consistency in analysis used to
support business decision making


analytics
Getting started

Deloitte’s approach focuses on delivering business value
through continuous analytic capability development

Formulate Strategy

Clearly articulate
the value and vision

Retrain the Develop & Use
Organization Insights
Create a culture of Deploy specific
fact-based decision tactics across the
making
Continuous organization
Improvement

Establish Analytics Build Data and IT
Function Capabilities
Obtain and organize
Find and manage
data and technical
the required talent
infrastructure


Summary: Customer insights and analytics

• Link objectives with clear business
drivers
• Know your data
• Start Simple
• Leverage existing insights
• Make it actionable and measurable
• Test and learn


Contact information

Jonathan Trichel
Principal
Deloitte Consulting LLP
jtrichel@deloitte.com

Christine Cutten
Principal
Deloitte Consulting LLP
ccutten@deloitte.com


"This presentation contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is
not, by means of this presentation, rendering business, financial, investment, or other professional advice or services. This
presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that
may affect your business. Before making any decision or taking any action that may affect your business, you should consult a
qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person
who relies on this presentation.

About Deloitte
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member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed
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for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

Copyright © 2010 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited

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