hp innovation in airline distribution

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Converting data into insight Personalized marketing & sales in

the era of social intelligence

Brian Cook

VP & General Manager, HP Enterprise Services

Transportation Industry Group

24 April 2012

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 2

Topics

• The “Big Data” challenge

• The customer intelligence gap

• Social intelligence and social marketing

• The business impact of social intelligence

• Characteristics of a socially-enabled business


Extensive experience in managing airline industry data

HP in the airline industry

70 billion Airline SOA transactions per

year

500 million Passengers boarded annually

50+ Airline system

migrations 6 Transportation

Industry Global

Centers of Expertise

20+ Years Supporting the

Airline Industry

9 Information Management &

Analytics Global Centers of

Expertise


HP research survey results

35% Are not effective

at accessing

enterprise

information as

and when

needed for

compliance or

operational

needs

34% Say that half of

their

information

is unconnected,

undiscovered

and unused

98% Cannot

deliver the

right

information,

at right time

to support

enterprise

outcomes all

of the time

50% Do not have

an effective

information

strategy in

place

Senior business and technology executive—survey data

Source: Coleman Parkes, October 2011

And it’s about

to get even

more

challenging…


Extreme information video

The next

information

challenge…

http://www.youtube.com/HewlettPackardVideos#p/u/46/mOPcE3fDodk

http://www.youtube.com/HewlettPackardVideos


The customer intelligence gap

Few

organizations

are managing

to connect the

many pieces of

data that could

lead them to more

effective and

efficient marketing

investment

Nielson

Financial databases


What is social intelligence?

Social media behaviors Classic marketing & CRM

The

knowledge

of customers

that arises by

combining

insight from

customers’ social

media behavior with the classic

customer intelligence from

conventional marketing and CRM

Social media

behaviors

Classic

marketing and

CRM


Social marketing

• Reduce cost of sale (or cost per acquisition)

• Reduce cost to serve (cost of managing customers)

• Reduce cost of failure (identifying key customer complaint areas and fixing them at the source)

• Improve yield

• Manage the “tail”

• Improve cross-selling rates

• Increase purchase frequency of existing product bought

• Increase basket size each time someone shops

• Acquisition, retention, and development of high-value customers

• Retention of the marzipan layer

• Reduce attrition across the mass of profitable customers

• Reduce value decay

Win customers

• Increase customer numbers

• Improve the quality of new customers you win

• Improve the “activation” rate

• Increase win-back of lost customers

Driving value with the big picture

Keep customers

Develop customers

Manage costs


The value of social intelligence

18% growth

Business impact

= Value of a fan

The most socially-enabled companies grew revenues on average by 18% over the previous 12 months while the least-engaged companies saw revenues sink 6% on average over the same time period


Summary Characteristics of a socially-enabled business

Value of a fan

1. Combines structured and unstructured (social) data to drive actionable customer

insights that drive growth

2. Recognized influencers and high-value customers

3. Encourages participation, sharing, and co-creation…internally and externally

4. Has “always-on” (real-time) capability…52 weeks of content versus campaigns

5. Learns from interactions and responds…social learning is applied

throughout the business, not just marketing

6. Knows how being social increases profitability