Information ManagementIBM Software Solution Brief

IBM PureData Solution for Customer Insight

Analytics are driving the success of integrated multi-channel retail marketingThe amount of time US consumers spend shopping on the web or via mobile applications has increased dramatically over the past few years. Fueled by steady growth in e-commerce and the torrential influx of mobile shopping applications, today’s omni-channel world enables a seamless shopping experience and complete transparency for the customer.

With these changes, the consumer dynamic has been transformed. Enterprises are increasingly focused on evolving their businesses from product-centric, to customer-centric. These changes provide an unprecedented opportunity to gain intelligence into what customers want and how they want to buy. But harnessing the flood of data and “the digital exhaust” left behind from a myriad of devices and applications can be daunting. The volume and complexity of the data is massive. The need to cross-reference customer IDs, cookies, email addresses, SMS handles, Facebook handles and other forms of identification is expanding at an accelerating rate. So how can businesses harness the raw materials and apply this knowledge to existing systems and business processes?

To effectively deliver on a cross-channel brand experience, enterprises must bring together e-commerce, mobile, call center and retail operations in a coordinated data and analytic platform. The IBM PureData Solution for Customer Insight combines solution software from Aginity, a leading customer intelligence company, with the IBM PureData System for Analytics, powered by Netezza technology, to deliver actionable insights on customer behavior. This combined solution is pre-tested and pre-configured for easy deployment, optimal performance, and rapid time to value.

The PureData Solution for Customer Insight provides retailers with a 360 degree view of the customer through cross-channel customer intelligence reports, analytics and insights.

Highlights

The IBM PureData Solution for Customer Insight enables retailers to analyze their customers’ experiences and gain a holistic view of their buying behavior. Retailers can find answers quickly to questions such as:

• Who are my customers and how do they interact with me?

• What channels are most effective in reaching them?

• How should I segment my customer base and what attributes do they have in common?

• What is the effectiveness of my current marketing strategy?

Information ManagementIBM Software Solution Brief

2

• Market basket gaps: Where are the opportunities and through which channels should they be pursued? For example, which customers have purchased a TV and DVR without an audio system?

• Segment migration: How do behaviors change over time and with the business? Across channels?

• Multi-level cross purchase analysis: What are the important items, categories and departments to cross-promote in-store, online, mobile and through social media?

The IBM PureData Solution for Customer Insight includes five key components:

Aginity customer cross-channel data platform• This data platform provides a single, integrated view of the

retailer’s customers, including data from all channels and touch points. It is highly adaptable, designed to support the evolving digital customer, yet stable so that change does not require frequent IT intervention. It supports PureData Solution for Customer Insight applications, but can be used with other business intelligence (BI) reporting and analytic tools.

Aginity data sourcing and integration• Provides pre-developed data integration and extract,

transform and load (ETL) routines, across digital and traditional channels. This accelerates the integration of the retailer’s customer data from multiple source systems into the PureData Solution for Customer Insights’ data model and out to real-time systems.

Analytic high performance system• Purpose-built for retail data warehousing and analytics

projects, it combines database, server and storage technology in a single solution for faster deployment, higher performance and lower total cost of ownership.

Make smarter decisions based on analytic-driven customer insights

The PureData Solution for Customer Insight’s best practice analytics quickly provide retailers with new customer insights to drive rapid business process improvement and return on investment (ROI).

• Customer proximity: How often do customers shop and buy across channels? How does proximity relate to channel interaction and product category purchasing?

• Product affinity: Analysis across channels and stores, on how well cross-selling targets are met. For example, if a customer purchases a laptop, are cellular WiFi and carrying bags also sold? Are accessories and add-ons purchased through different channels than the destination product?

• Cross-channel conversion: Optimize display and key-word ad buys based on customer action clusters, content and other advertising attributes.

• Customer equity and lifetime value: Driving an individual’s profit contribution by channel, touch point, event, time period, customer segment, or product segment.

Information ManagementIBM Software Solution Brief

3

Best practice analytic reporting and customer application• Core set of customer analytic reports, functions, metrics, and

built-in components with the PureData Solution for Customer Insight, to quickly provide retailers with new customer insights to drive rapid business process improvements and ROI.

Behavioral segmentation and analytics• Provides 35-40 core customer segmentation models and

120+ actionable behavioral attributes that offer insight on potential improvements across the enterprise, from marketing and merchandising to store planning and product enhancement. Leveraging data on how customers interact with a retailer’s complete value proposition (product, price, promotion, channels and more), these models reveal who the retail customers are, what they want, and how they can be most effectively attracted, satisfied and retained.

Whether adding new analytics, segmentation models, reports, data sources or user groups, the PureData Solution for Customer Insight is designed to meet the needs of all retailers. This includes those who are just getting started with cross-channel customer analytics, or those who have more mature customer intelligence analytics programs. With a core solution that can be deployed in less than 12 weeks, the PureData Solution for Customer Insight can be extended over time to support the retailer’s growing analytic expertise and needs.

Using all the customer data a retailer has vailable — including loyalty programs, CRM, e-commerce, social, mobile, or third party data — the PureData Solution for Customer Insight

helps retailers understand who their customers are and what they value. This enables retailers to drive better marketing, promotion, assortment, pricing, store design and supply chain decisions. The capability can also enable a more tailored brand experience, particularly for businesses that differentiate primarily through their pricing and promotional strategies, by delivering premium customer service.

About IBM PureData System for AnalyticsThe IBM PureData System for Analytics, powered by Netezza technology, integrates database, server and storage into a single, easy-to-manage system that requires minimal setup and ongoing administration. It seamlessly scales from terabytes to petabytes, so that businesses can easily deal with the demands of big data. Best of all, analytic models are processed at lightning fast speed, due to the massively parallel architecture. Visit: ibm.com/PureData to see how our family of expert integrated systems eliminates complexity at every step and helps you drive true business value for your organization.

About IBM Business AnalyticsAt a time when applying analytics to big data has become an imperative, IBM Business Analytics software uniquely enables your organization to apply analytics to decision-making, anytime, anywhere. Whether you are using traditional analytics or adding big data to the equation, you can tap into all types of information, empower people in all roles to explore and interact with information and deliver insights, optimize all types of decisions, provide insights from all perspectives and time horizons, and improve operations, manage risk and achieve better business outcomes.

About IBM Data Warehousing and Analytics SolutionsIBM provides the broadest and most comprehensive portfolio of data warehousing, information management and business analytic software, hardware and solutions to help customers maximize the value of their information assets and discover new insights to make better and faster decisions and optimize their business outcomes.

About AginityAginity builds enterprise solutions, coupled with scalable analytics, that connect into the real-time fabric of an organization and its partners, leveraging the extreme capabilities of the PureData System for Analytics, powered by Netezza technology. Visit www.aginity.com to learn more.

Basic

Everyone owns the customer

Basic demographic and product-oriented segments

Customer experience siloed by channel

No formal customer performance metrics

Intermediate

Formal customer file, “360-degree view”

Channel silos linked by “bridges”

Centralized customer analytics helps form strategy

Multiple segmentation schemes (demo, value, product, etc.) each with distinct uses

Mature

Obsession with customer experience design and delivery

Many-dimensional customer segments drive strategy

Formal executive role for customer ownership

True cross-channel integration of customer

Customer chooses to self identify

1

23

Retail customer intelligence maturity path

IMS14376-USEN-01

© Copyright IBM Corporation 2013

IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A.

Produced in the United States of America September 2013

IBM, the IBM logo, ibm.com, PureData and PureSystems are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at " Copyright and trademark information” at ibm.com/legal/copytrade.shtml. Netezza is a registered trademark of IBM International Group B.V., an IBM Company.

The content in this document (including currency OR pricing references which exclude applicable taxes) is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates.

The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. It is the user’s responsibility to evaluate and verify the operation of any other products or programs with IBM products and programs. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

Actual available storage capacity may be reported for both uncompressed and compressed data and will vary and may be less than stated.

Please Recycle