the analytics highway to customer loyalty - alteryx webinar
DESCRIPTION
The Analytics Highway to Customer Loyalty There are more sources of customer data than ever before. But, many people cannot analyze this data, and must rely on data scientists who don’t understand their business problems and don’t have the sense of urgency they have. See how you can perform your own analytics, predict customer behavior, and create more loyal customers. Plus, learn other startling facts from our recent survey on customer analytics, including: - Which sources of data provide the most insight into customer preferences and future behavior? - How does this insight drive measurable improvements in sales, customer retention, efficiency and brand loyalty? - What are the biggest challenges that inhibit analytic decision making, and how can they be overcome?TRANSCRIPT
1© 2013 Alteryx, Inc. Confidential.
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The Analytics Highway to Customer Loyalty
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Today’s Speakers
Bob LaurentDirector of Industry Marketing
Alteryx
Abhishek BansalAssociate Director of Customer Analytics
Absolutdata
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• Background
• Customer Analytics Survey• Data Sources• Benefits• Challenges• Investment Areas
• Focus on Investment Areas• Technology: Alteryx• People: Data Artisan• External Resources: AbsolutData
• Q&A
Today’s Agenda
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There are lots of sources of customer data
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Unfortunately…
Many companiescannot get aclear view of
their customers
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We went in search of the facts…
In Spring 2013, Alteryx and AbsolutData surveyed industry thought leaders to gather insight into how organizations use Customer Analytics, including adoption levels, goals, usage, and relative maturity.Our goal: Identify the benefits and challenges organizationsface when turning Big Data into customer insight
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Data was gathered from a diverse set of professionals across a range of industries
25%
42%
33%
Consumers Other businesses Both
Products/Services Offered
Services
Retail, wholesale
Banking, Finance, Insurance
Telecom
CPG
Hospitality
Manufacturing
Nonprofit
Government
Construction
Transportation
Other
24%
16%
15%
6%
4%
3%
3%
3%
1%
1%
1%
24%
Industry Number of Employees
28%
21%11%
15%
25%
1-100 101-500 501-1,000
1,001-5,000 5,000+
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Data was gathered from a diverse set of professionals across a range of industries
Department
41%
32%
7%
6%4%
9%
Research and Analytics Marketing IT Sales
Customer Care/Retention Other
37%
23%
19%
12%
8%
I develop customer analytics solutions for my company
I do not develop applications, but I use their output
I give directions to a team on how to use customer analytics
I am not involved in customer analytics
Other
Level of Involvement
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Companies collect many differenttypes of customer data
Data captured from every customer interaction has the potential to provide deeper insight into their behavior, attitudes, and opinions—insight that can be leveraged to improve customer relationships and gain a competitive edge.
Traditional data sources still dominate, but several new areasof insight are emerging.
Customer demograph-ics
Primary/research data
POS/transaction data
Customer interaction data
Social media
Loyalty card data
Complaint data
Recorded voice calls
Others
69%
69%
61%
49%
41%
31%
30%
17%
6%
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Vast majority of companies useCustomer Analytics today
82%18%
Yes No
Organizations are listening to what customers say through their data. They use this insight to implement customer-driven marketing strategies that improve revenue and customer loyalty.
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Analytics provides input tostrategic operations
Customer Focus
ChannelFocus
Customer acquisition/retention
Enhanced customer satisfaction
Increased loyalty
Improve product/service design
Optimize marketing/channel
Design/improve channel strategy
69%
63%
46%
62%
60%
49%
Customer Analytics is used primarily for customer-focused Sales & Marketing activities.
But, many also use this insight to make product/service portfolio decisions, and determine the optimal distribution channels.
ProductFocus
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But, Three Major Challenges Emerged:
CHALLENGE #1:Getting the Right Data
CHALLENGE #2:Lack of Access & Skills
CHALLENGE #3:ROI Assessment
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CHALLENGE #1: Getting the Right Data
• Different departments use different data sources in an attempt to answer similar questions
• Time is wasted with tools that cannot processBig Data efficiently
• Unstructured, but valuable data such as social media and call center logs cannot be used
Massive volumes of disparate data types and sources must become easier to access, work with, and blend
Accessing data managedby other departments
Integrating massiveamounts of data
Integrating disparatedata types
Converting data into actionable insight
Collecting and storing relevant data
43%
39%
38%
37%
23%
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Case Study
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Consummate experience in blending diverse data sources
Attitudinal data
Preferences
Attributes
Bureau Data
Prospects lists
Annual Reports
Public data
Library
Core/Non Core
Growth Potential
Pricing
Location
Product range
GDP Growth
Unemployment
Population growth
Socio Eco Segment
Income
Lifestyle segment
Purchasing Attitude
Psychographics
Risk & Income Profile
Payment history
Collections history
Contact history
Contact details
Campaign history
Campaign response
Loyalty
Point of Sales
Channel Usage
Product Usage
Consumer Research
Consumer Research
Third Party DataThird Party Data
AttitudesAttitudes
TransactionsTransactions
DemographicsDemographics
Customer ResponseCustomer Response
Risk & Collections
Risk & Collections
Customer Contact
Customer Contact
Secondary Research
Secondary Research
Macro EconomicMacro Economic
CompetitorCompetitor
VendorVendor
Opinions
Social Media
Behaviour
Revenue
Cost to acquire/servceCustomer
ProfitabilityCustomer
Profitability
FacebookFacebook WebsiteWebsite
TwitterTwitterIntranetIntranet
AbsolutData created a 360 degree single customer view for its client, combining various data sources• Designed the data warehouse• Combined structured and unstructured data sources• Used data warehouse for advanced marketing & customer analytics
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CHALLENGE #2: Lack of Access & Skills
12%
38%42%
8%
Industry leading, with a mastery of advanced ana-lytics Advanced, using predictive and spatial analytics Basic, for modification of existing analytic work-flows Limited, for generating reports only
• Limited access to IT staff/resources drivingline-of-business users to do their own analytics
• Access to data and overly complex toolsremains a barrier to greater analytics usage
• There is limited ability for new analyses, especially in B2B companies where basic skills dominate
The analytics required to answer complex questions must be put into the hands of users with the industry knowledge and skills
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Diverse skill sets deployed for a $8B Hospitality major
Standalone projects:Data explorationCampaign ExecutionAd-hoc analysis
Diversified into work streams: Campaign
ManagementStatistical ModelsSegmentation
Moving towards: Significantly
augmenting analytical capabilities to solve more complex business problems
Opportunity Identification - driving business strategy through analytics. E.g. contact optimization
Process enhancements, Analytics enrichment
Thought partnershipStrategic leadership
2012 H1 2012 H2 2013
Volume
Analytics Technologist
Analytics TechnologistAnalytics Scientist
Analytics TechnologistAnalytics ScientistBusiness Consultant
5 Resources 10-15 resources 30+ team
Skills Deployed
Value
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CHALLENGE #3: ROI Assessment
• Organizations struggle with defining & calculating ROI for analytics
• Less than half can identify positive ROI
• Implementation of marketing best practices canbe accelerated using specialized support
ROI remains elusive so a customized approach is required based on the analytics maturity of the organization & its current analytics capabilities
9%
10%
43%
38%
Return is less than investment Return is equal to investment Return is more than investment Don't know or can't measure
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Case Study
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Helped Asia’s leading Satellite TV services provider to achieve quantifiable ROI from analytics deployment
IT Infrastructure
Data
Attrition Models Segmentation Payment Models
Lifetime Value Pricing ModelsAn
aly
tics
Valu
e
1.5% increase in recharges
30% increase in Revenue per user
Doubling of ala-carte sales
10% increase in response rates
25% cost reduction in campaigns
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Summary of Challenges & Recommendations
CHALLENGE #1: Getting the Right DataMassive volumes of disparate data types and sourcesmust become easier to access, work with, and blend
CHALLENGE #2: Lack of Access & SkillsThe analytics required to answer complex questions must be put into the hands of users with the industry knowledge and skills
CHALLENGE #3: ROI AssessmentROI remains elusive so a customized approach is required based on the analytics maturity of the organization & its current analytics capabilities
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Analytics Investment Continues
Despite these challenges, almost all companies plan to increase their investment in analytics technology, people and external resources.
ExternalResources
People
Technology
71%
75%
95%
22%
12%
4%
7%
13%
1%
Positive No change Negative
Average Increase: 21%
Average Increase: 25%
Average Increase: 14%
Average Decrease: 10%
Average Decrease: 11%
Average Decrease: 12%
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Analytics Investment: Technology
Alteryx is:
• Both our company and our product
• A Windows-based software platform
• Installed on a desktop or server
• Trusted by 250+ customers and 200,000+ users, including the Fortune 500
• Leading the Consumerization of Big Data Analytics
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DESIGNER DESKTOP
Step 1: Integrate all Relevant Data
InputIntegrate
(Sort, Join, Aggregate)
Cleanse &Geocode
Enrichwith ThirdParty Data
EnterpriseData
DeviceData
SocialData
CloudData
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Step 2: Develop Analytic Workflows
SpatialAnalytics
PredictiveAnalytics
BehavioralAnalytics
DESIGNER DESKTOP
LOTS of different tools for data blending, enrichment, and analytics :
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Step 3: Produce and Share Insight
DESIGNER DESKTOP
OutputData
Produce Reports,Charts, Maps & Emails
Publish toCloud
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Alteryx Analytics GalleryCreate & Share Analytic Apps in the Cloud
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Alteryx Analytics GalleryCreate & Share Analytic Apps in the Cloud
Turn Disparate Data
Into Actionable Insight
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Analytics Investment: People
Data Artisan
Capabilities of Data Scientistthat Drive Largest Value Today
Marketing orCustomer Analyst
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Analytics Investment: External Resources
Founded in 2001
Pioneer in delivering Analytics and Marketing Research by leveraging a global delivery model
Over 400+ employees with HQ in the San Francisco Bay Area & delivery center in New Delhi, India
Senior management from McKinsey, Kraft, Pfizer, Mitsubishi, Nielsen, GE, HSBC and Accenture
Raised $20M from Fidelity Growth Partners India in August 2012
Recently co-authored a widely circulated report on Marketing Analytics Opportunity with Nasscom (Premier organization representing IT and Outsourcing Industry in India)
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Comprehensive & Broad Service Offerings
Analytics
Data Visualizatio
n & Reporting
Market Research
Business Research Big Data
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Delivering Value Across SectorsAbsolutData serves many Fortune 500 clients around the globe, spanning many
industry verticals. Consulting
Top International Management Consulting Firm Leading Global Management Consulting Firm with offices in 42 countries
CPG / Food & beverages
An American multinational confectionery, food and beverage conglomerate – second largest in the world
World's second-largest brewing company
Retail Largest specialty apparel retailer in the U.S. World's Largest Office Supply Retail Store Chain
Hospitality International Chain of Full-Service Hotels and Resorts
Telecom, Technology
&Online
Leading Multinational Telecommunications Corporation World's Largest Mobile Telecommunications Company
Banking and Financial Services
Institutions
Leading American Multinational Diversified Financial Services Company Regional Full Service Commercial Bank in the US
Pharmaceutical
American-based global, diversified (multi-division) pharmaceuticals and health care products
Media & Entertainment
Largest Media and Entertainment Conglomerate in the World Leading American Cable Television Network Company
Automobile Top Japanese Multinational Automobile Corporation Largest Automobile Manufacturer in the US
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A Few of Our Esteemed Clients….
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Summary: A New Analytics Paradigm has Emerged
OVERCOMES DATA CHALLENGES:Blends massive volumes of disparate data types and sources in a straightforward, workflow format without complex coding
OVERCOMES USER CHALLENGES:Robust predictive and spatial tools allow Data Artisansin the line-of-business to perform their own analytics
OVERCOMES FINANCIAL CHALLENGES:External expertise can help organizations carefully plot its analytics journey and accelerate its ROI to derive the maximum benefit
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Thank Youfor Attending!
You will receive a free copyof our new white paper:
1. Details about the survey results
2. Insight about how YOU can put data to work to drive critical improvements in sales, customer retention, and brand loyalty
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Q & A
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• Consumer Analytics• Predictive Analytics• Strategic Analytics• Big Data Analytics• Big Data Analysis• Humanizing Big Data• Strategic Analytics• Data Scientist• Data Artisan• Data Analyst• Big Data Gap• Unstructured data• Analytics Platform• Unstructured Data
• Alteryx• Bob Laurent• Absolut Data• Alteryx Analytics Gallery• Customer Loyalty
Key Terms