the future of customer analytics
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Presentation given at a Business Analytics for All event in Belgium last week. BA4All.com More details on timoelliott.comTRANSCRIPT
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The Future of Customer AnalyticsTimo Elliott, Jan 30, 2014 Public
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© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2Public
Our customers produce more than
65% of the coffee and tea we drink each day
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© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3Public
Our customers produce more than
70% of the world’s chocolate.
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© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4Public
Our customers
produce 64% of the world’s ice cream.
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© 2014 SAP AG or an SAP affiliate company. All rights reserved. 5Public
Our customers produce more than
72% of the world’s beer.
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© 2014 SAP AG. All rights reserved. 7
Customer Analytics Trends
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73% of people surveyed wouldn’t care if the brandsthey use disappeared from their life.
Source: Co.Exist
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Millennials trust strangers over family and friends. They lean on User-Generated Experiences for purchase decisions.
Source: Brian Solis’ Future of Business, 2013
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70% of buying experiences are based on how the customer feels he or she is being treated.
Source: McKinsey
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More than 70% of customers surveyed believe small businesses understand their customer better than large companies, know their business/product better than large companies, provide a more personal customer service experience than large companies and are more concerned about my needs than larger companies.”
Source: : American Express Global Customer Service Barometer, 2012
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On average, loyal customers are worth up to 10 times as much as their first purchase.
Source: White House Office of Consumer Affairs
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80% of CEOs think they deliver a superior customer experience
Source: The New Yorker
-- but only 8% of customers agree.
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The #1 Use of Big Data is Customer Analytics
Source: McKinsey
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Which Business Decisions Benefit Most From Big Data?
Source: McKinsey
Market opportunity and segmentation
Customer retention
Products and service mix
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What Is “Big Data”? The Google Summary
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Big Data is at Peak of Inflated Expectations…
…but BI & Analytics still #1 Technology priority for 2014
Source: Gartner
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Descriptive:What happened?
Diagnostic:Why did it happen?
Predictive:What will happen?
Prescriptive:How can we make it happen?
Analytic maturity
Hindsight Insight Foresight
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By 2017, there will be close to $11 Billion in revenue from35-million homes using home automation platforms across the globe.
Source: GIGAom, 2013
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Wearable devices have grown by 2x month over monthsince October 2012.
Source: Mary Meeker’s Internet Trends, 2013
Photo: Intel Free Press
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The “Datification” of Daily Life
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“We’ll put more computers in our laundry in a week than we’ve used in our lifetime so far”
Gartner
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The “Datification” of Daily Life
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Put Lego here – the nice lego flash file!
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The “Datification” of Daily Life
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The “Datification” of Daily Life
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Discover Hidden Trends
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You Are Being Watched
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Is Your TV Spying On You?
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Spy Chips?
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Edward James Snowden
Edward Joseph Snowden
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Information becomes what you sell…
i
i i
Businessownership
ITownership
HBR: “Analytics 3.0”
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Predictive
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© 2014 SAP AG. All rights reserved. 38
Understanding Customers
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Barclays
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Track Who Likes Your Products (And Why, And When…)
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Social Analytics
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Orange Poland (Telekomunikacja Polska)
Churn model accuracyimproved by 47% withsocial
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“Data-driven decision making played a huge role in creating a second term for the 44th President. In politics, the era of big data has arrived.”
- Time Magazine
Engage Your Fans
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© 2014 SAP AG. All rights reserved. 44
What, When, and Where
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Optimizing Sales
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© 2014 SAP AG. All rights reserved. 46
Deliver The Right Offer To the Right Customer At The Right Time
Modeling time from 3 months to 3 daysUp to 4x increase in campaign response ratesFrom product to customer marketing
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Add Customer Value in Real-Time
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Coinstar
• Inventory Optimization
• Real time Offers
• Servicing
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Perfect Your Pricing and Packaging
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Personalized Offer Testing
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Optimize The Customer Experience With “Playnomics”
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Customer Experience
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© 2014 SAP AG. All rights reserved. 53
Reinvent Luxury Service
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Be A Trusted Advisor
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SAP Fashion Retail Brand Insight
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Experience Intelligence Center
Event Interception
Business Transformation
Make People Happy
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Make People Happy
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Mapping stores on STM lines and stations
• STM Partners’ stores.
Create a Commerce Eco-System
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• Interact with consumer in the field• Run mobile marketing campaigns based
on consumer profile and location
• Interact with consumer in real-time anywhere, anytime.
• Design & run mobile marketing campaigns based on consumer profile and location
• Analyze consumer behavior in the field
Create a Commerce Eco-SystemA platform for real-time interactivity between consumers, STM and partners
SAP Precision Retailing(On-Demand, Multitenant, High Performance, Scalable)
• Receive information, discounts & Special offers
BI
CRM
Merchants
Outings
Transports
Partners
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A Personalized, Multi-Vendor Customer Experience
Valid at this time
For my profile (segments)
In the store(s) nearby
Eligible offers
Top x
What time is it ?Where am I?
What is my personal profile?What is my CRM profile?
Select Rate & Order Deliver & Learn
What are my preferences ?Where am I?
What is my personal profile?What is my CRM profile?
The rating is based on the learning engine and on the characteristics of the shopping context, the consumer preferences, and the frequency of presentation.
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© 2014 SAP AG. All rights reserved. 61
Omni-Channel Retailing
ERP Warehouse PLM CRM Data Pools Suppliers
BACK OFFICE
master data
platform
omni-channel logicorder orchestration
omni-channeltouch points
FRONT OFFICE
TV console POS mobilecall
center printsocialWeb
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Advanced personalization
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Sharing Analytics With Your Customers
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What Do These NBA Players Have in Common?
D.J. Mbenga
Tony Parker
Xavier Henry
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Engage Your Fans
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Sailing
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Superbowl Predictions
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Engage Your Citizens
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Engage Your Students
“In the past five years, taxpayers have spent $9Bn on college students who drop out before year two”
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Learn Then Act“Saving 1% in Student Retention can save my University’s bottom line $1M a year”
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Make Yourself Invaluable
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Data To Partners
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Fleet Management Customers
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Aggregate Insights
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Conclusion
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Technology is Important – But It’s Not About Technology
“The stone age was marked by man's clever use of crude tools; the information age, to date, has been marked by man's crude use of clever tools.”
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Innovation And Design Thinking
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Unwire your business to deliver secure, real-time, business-critical information – anytime, anywhere, to anyone, on any mobile device.
Run your business smarter, faster, and simpler, with an integrated suite of applications powered by SAP HANA – delivering long-term predictability and nondisruptive innovation.
ApplicationsExplore and exploit data, find answers in real time, and make confident decisions. Harness visually compelling, easy-to-use tools on the devices of your choice.
Analytics
Mobile
Simplify your IT infrastructure dramatically and drive high-value innovation by exploiting across structured and unstructured data sources.
Database & Technology
A real-time business platform, powered by SAP HANA
Our portfolio combines the best of next-generation technology to help you innovate, transform and grow
Capture the power of the cloud – while fully integrating with on-premise investments. Empower your employees, engage customers, and collaborate with partners across business networks.
Cloud
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© 2014 SAP AG. All rights reserved. 84
Thank you!
Timo Elliott, SAP
Twitter: @timoelliott
Blog: timoelliott.com