CUSTOMER INTIMACY

IBM SPSS MODEL

Introduction – What is Customer Intimacy?

• Customer intimacy – an innovative strategy for helping organizations

• Increases customer lifetime value,

• Reduces customer turnover,

• Enhances up-sell and cross-sell opportunities

• Gain a holistic customer view that drives improved interactions, business processes, products and services.

History• Previously, customer intimacy was build upon

the following disciplines:– Customer experience management (CEM),

– Enterprise feedback management (EFM)

– Voice of the customer (VOC)

• The hidden value in the volumes of customer data available with the business is rarely unlocked and put to good use.

• Achieving the benefits of customer intimacy requires an advanced capability for collecting, analyzing and acting upon that data.

• IBM SPSS (statistical package for thesocial sciences) is the standardized solution.

• A technology to transform data into actionableinsights that drive customer intimacy.

• Renders help to :– Collect attitudinal data about customers

– Generate predictive insights about what customers want and will do next

– Integrate insights into your company’s operational systems (such as web, customer contact systems, CRM) and product development processes

– Automate and optimize decisions at customer interaction points.

• The four IBM SPSS product families:

1. DATA COLLECTION: Discover what customers want

2. STATISTICS: Analyse your customer data

3. MODELLING: Apply the power of prediction

4. DEPLOYMENT: Execute, optimize and automate

CUST_DATABASE IBM SPSS DATA COLLECTION IBM SPSS S/W

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IBM SPSS MODELER

IBM SPSS STATISTICS

IBM SPSS DEPLOYMENT

Creation of Surveys

Identifies most valuablecustomers

Personalize predictive analysis

Real-time recommendations

DATA COLLECTION

• Helps you easily create surveys to reach customers across multiple customer touch points

• Ability to collect feedback throughout the customer lifecycle to create personalized and timely interactions that generate better outcomes

• “Why behind the what.”-• Why customers buy your products;

• Why they prefer certain features;

• Why they will or won’t respond to promotions or marketing campaigns;

• Why they might consider defecting to competitor;

STATISTICS• After capturing attitudinal data with data collection,

you can combine that with demographic andbehavioural data in your customer database andanalyse it with the IBM SPSS statistics family ofproducts to extract even more insights.

• It determines which customers will most likely respondfavourably to marketing campaigns, analyzes responserates to marketing offers and classifies contactsaccording to characteristics.

• Using recency, frequency and monetary (RFM)analysis :– Increase the effectiveness of campaigns– Decreasing marketing costs because you know precisely

which customers to target.

MODELLING• The ability to anticipate what customers want and will

do next is an essential component of customerintimacy.

• Ibm spss modeller - a versatile data and text analyticsworkbench– It enables you to build powerful predictive models using

survey data from data collection,– Analytic results from statistics,– Unstructured text data and other sources.

• With modeller, there is no guesswork,– Able to identify the kind of customers you have,– Look for similarities or differences in their behaviour and– Ensure that your customer processes are based on actual

behaviour.

DEPLOYMENT• IBM SPSS deployment product family delivers the customer insights

from the data collection, statistics and modeller families to yourfront-line systems and decision-makers.

• Can quickly and easily determine which are the best candidates foran up-sell, cross-sell or retention offer

• It leverages all of your customer information – includingtransactions, purchases, call histories and web site visits – torecommend the best action your staff should take.

• Real-time capabilities enable the software to makerecommendations based on the most up-to-date customerinformation available, including information from other channels,back office systems and real-time information entered by the enduser.

• Makes customer intimacy a part of the dna of your organizationthrough a closed loop “virtuous cycle” of insights and executionthat continually improves upon itself.

APPLICATION• Customer intimacy in action: first tennessee bank• First tennessee bank suspected it was wasting

thousands of dollars annually on its direct marketing campaigns by focusing on products rather than customers.

• Despite an abundance of data, the bank had little insight into the preferences and behaviours of individual customers.

• After implementing ibm spss software, first tennesseegained a deep understanding of their customers and sparked demand by targeting those with a propensity to buy new products. The bank reduced its direct mailing costs 20 percent while increasing its customer response rate by 3.1 percent.

REFERENCESLINKS:• https://www.youtube.com/watch?v=5w0DTCVyUDg

• https://www.youtube.com/watch?v=eTHvlEzS7qQ&noredirect=1

• http://www.dummies.com/how-to/content/how-spss-statistical-package-for-the-social-scienc.html

• http://www.ssc.wisc.edu/sscc/pubs/spss_students1.htm#LearningMore

• FIRST TENNESSEE BANK: https://www.youtube.com/watch?v=PrfVfakksy8