Teradata day2010 sunum

Copyright © 2010 SAS Institute Inc. All rights reserved.
SAS Customer Intelligence: Integrated
Multi-Channel Marketing Platform
Rakela Semoil,
SAS Customer Intelligence Practice Lead

2
Copyright © 2010, SAS Institute Inc. All rights reserved.
Agenda
 Introduction to SAS
 Marketing Trends and Challenges
 Overview SAS Customer Intelligence
 SAS Approach: Multi-Channel Interactive Marketing Platform
 Highlight : Marketing Optimization
 Conclusion : Closed Loop Marketing with SAS

3
Agenda

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SAS Institute
The Business-Analytics-Software Company
“We want to be the first company people call when they
need to solve business problems.”
Dr. James H. Goodnight, CEO and founder of SAS Inc.
 Founded 1976 in Cary, North Carolina
 11.000 Employees worldwide in > 400 SAS Offices in 52 countries
 SAS Türkiye since 1997
Revenue (Int.)
2,31 Billion US$
Investments in R&D
> 23 %

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Our references

6
Agenda
 Real life examples

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The New Customer

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Multi-Channel Customer: Information gathering and buying behaviour
follows the evolution of channels and media. Rise of Internet & Mobile.
The New Customer
The Customer is already Multi-Channel
Engage
Transact
Fulfill
Service
Web
Call
Center
Branch
/Shop
Direct
Mail eMail
„...a good example is the Automotive Industry:
Couple of years ago a consumer visited in
average 6 car dealer before he bought a car.
Today the average is 1,2 car dealer. Customers
find all relevant information in internet and they
make their decision in front of their
computer....when they visit the dealer they
already know what they want.“
Philipp Schindler, Nordeuropa-Chef von Google

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„Consumer is a Cat“: Customer Loyalty is shrinking. Customers wish to be invited,
integrated, entertained and treated „emotionally“. Consumers are more demanding.
The New Customer
We have treated consumers like dogs long time. We tried to
train them through constant repetition of a message. We
wanted to condition them. That does not work any more. The
consumer of today does not react automatically when you call
him. He behaves more as we know it from cats: idiosyncratic,
independent, autonomous:
The consumer is a cat.
To conquer the heart of this new consumer type is one of the
big challenges.

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From Consumer to Prosumer – Customer wants to be heard and participate. The
lines between Consumer and Producer are often blurred – with considerable impact on
buying behaviour.
The New Customer

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The New Customer
Erosion of Credibility and rising importance of Social Media – Customers scrutinize
Organizations Marketing and Communications.

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 Lack of Customer Insight or existing Insight is not used
 No integrated multi-channel solutions for customer
management
 Planning and execution of marketing campaigns takes a long
time,
 No centrally “orchestration”
 Inbound and outbound actions can not be connected, and the
Internet/Online department is still separated from the rest
…but the reality is

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Agenda

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Channels
Outbound-
Interactions
Feedback
Analytics and Data Mining
Optimization of
interactions
Marketing
Controlling
Inbound-
Interactions
Campaign
planning
Potential-
analysis
Campaign
design
Campaign
analysis
Marketing Resource Management
Campaign
optimization
Campaign
Fulfillment
SAS Customer Intelligence: Overview
DataintegrationandDataquality
Teradata
Other DB.
Text or PC files
Web data

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Channels
Outbound-
Interactions
Feedback
Analytics and Data Mining
Optimization of
interactions
Marketing
Controlling
Inbound-
Interactions
Campaign
planning
Potential-
analysis
Campaign
design
Campaign
analysis
Marketing Resource Management
Campaign
optimization
Campaign
Fulfillment
SAS Customer Intelligence: Overview
DataintegrationandDataquality
SAS CI Suite
Teradata
Other DB.
Text or PC files
Web data

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SAS® Customer Intelligence
Integrated Multi-Channel Marketing Platform

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Agenda

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Understanding Optimization
Client Camp A Camp B Camp C
1 100 120 90
2 80 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 75 90 65
8 65 60 60
9 80 140 75
Campaign
A
Campaign
B
Campaign
C
• Model scores define response probability for each campaign
• Probability * Expected Revenue = Expected Value
• Expected Value drives campaign allocation
• Constraints: Each customer gets only 1 campaign & each campaign gets
3 customers

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1 100 120 90
2 80 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 75 90 65
8 65 60 60
9 80 140 75
Campaign A
?
?
675
Campaign C
Expected Return:
Campaign Prioritization
?
Campaign B
Constraints:
Each customer - 1 campaign
Each campaign - 3 customers

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1 100 120 90
2 80 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 75 90 65
8 65 60 60
9 80 140 75
Campaign
B
Campaign
A
Campaign
C
?
?
Expected Return: 640705
Constraints:
Each campaign - 3 customers Improvement: +30
Customer Rules Approach
Customer allocation by Customer value

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1 100 120 90
2 80 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 75 90 65
8 65 60 60
9 80 140 75
Campaign
B
Campaign
A
Campaign
C
Optimization Approach
Expected Return: ???780
Constraints:

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1 100 120 90
2 80 70 75
3 60 75 65
4 55 80 75
5 75 60 50
6 75 65 60
7 75 90 65
8 65 60 60
9 80 140 75
Campaign
B
Campaign
A
Campaign
C
Optimization Approach
Expected Return: ???780
Constraints:

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Agent-Optimization
Revenue-Optimization
using the same Budget
Marketing ROI
Optimization
4 Mio. Customers
20 offer types
SAS Marketing
Optimization
PoV: Up to 80%
Budget ROI
Enhancement
In Production:
Revenue increase by
50% using the same
Budget
ROI increase from
407% to 637%
Solution ResultsChallenge
"“With SAS, we are a great step forward in integrated
planning and execution of campaigns. I am sure that
this solution gives us a clear competitive advantage.”
Heiko Güthenke, Abteilungsdirektor Kunden &
Geschäftsanalyse

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Real-Life ROI Examples
80% Budget ROI
50% more Return with same Budget
Reduction Campaign Planning
Time from 3 Months
to few Hours
Outbound-Calls reduced 25%
67% higher Return
and Reduction of Offers 12%
Prognosted incremental
Return per year >10 Mio. Euro
Live after 1 Month
Payback in 2 Months
Cost Saving per Year > 4Mil. $
Customer Churn down 25%
Effectivity up Factor 5
Credit Card Conversion Rate from
4-5% to 20-30%
20% higher Efficiency
in Campaign Process.
>$10 Million Cost Saving in 3 Years
57% higher Up-Selling
Response Rates up 10-250%
Continuous ROI >200%
SAS CI used for 17 Banks with
ca. 10 Million Customer with more
then 150 Campaigns per Week
Increase Retention Rate by >10%
(Best Customer Segment 80%)
Increase Repeat. Buyers
from 40% to more then 50%
Number Customers
from 10 Million to >30 Million

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Agenda

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…how does Closed-Loop Marketing Strategy look
with SAS?
Develop Marketing
Campaign
Optimize with
concurrent campaigns
Deliver personalized
Offer
Adjust offer in real time
AdressSocial Influencers
with Mobile Marketing
Manage
Marketing Performance
Identify Business Needs

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