the role of sas in the analytics framework aleksandar zajic vp business analytics...
TRANSCRIPT
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Company Snapshot
• Founded in 2007 • 38 employees– headquarters - Millbrae, CA
• Facilitates real-time interaction• Cross Platform Reach– Site, Facebook, iOS, Android
• Established technology platform• Strong customer acquisition funnel• Critical mass of users
• 130,000 premium subscribers• 9M monthly unique visitors• 17M+ users
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Subscription Based Model: Flow• SpeedDate relies on two tier subscription model:
– Basic subscription with limited functionality and user experience. It is free for all subscribers.– Premium subscription with full functionality and enhanced user experience. Customers pay subscription fee for this level
of service.
• Goal is to convert as many customers as possible to premium subscription status and offer them full user experience.
User Experience
CRM/Life Cycle Management
Customer LTV
Basic Subscription
Premium Subscription
Retention Micro trans. ReactivationOrganic
Traffic
Marketing Acquisition
• Metrics to monitor:– Acquisition ROI– Basic to premium subscription conversion rate– E-Mail campaign lifts– Customer satisfaction / user experience indicators– Average customer LTV
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SpeedDate Analytics Framework
Analyticsand
Modeling
Reporting:• ODS HTML• VB Excel
E T L
Engine
Analytics DW
DatabaseSAS/ACCESS®
ET
L
SAS DatasetsData cubes
• Customer profiling• Propensity modeling• Segmentation• Forecasting• Risk modeling
Exte
rnal
data so
urces
• Acquisition effectiveness report• Mobile report• UE analysis• Risk and Fraud analysis
Captures user profile, preferences and all activities on the site/device/app
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Why SAS?
• Multiple Analytics/Modeling and BI programs and tools available, some for free, most cheaper than SAS:– R – SPSS– Statistica– Excel
• SAS is the only package that even in basic configuration can on its own play central, integrative role in the enterprise level analytics / bi framework.
• It combines decent ETL and reporting capabilities with excellent analytics/modeling capabilities.
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Role of Analytics1
• Find the most profitable growth opportunities– Manage data– Profile customers– Predict customer behavior
• Indicate best actions– Optimize strategies– Customer engagement– User experience
• Maximize Cross-Business Impact– Optimize ROI– Continuous learning from customer behavior
1 Competing on Customer Intelligence, SAS Whitepaper
SpeedDate – The Future is Real-time
SpeedDate has the #1 mobile dating app
Meeting people should be instant, easy, and fun-Core feature is instant SpeedDates-Location-based matching-Critical mass-High engagement
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Marketing Acquisition Analytics Platform
• Key objective is to create near to real time ability to asses success and ROI from each new acquisition campaign
New Traffic:• Quality• Revenue• Life Cycle• Other
variables
Time point 1:• Create time
series algorithm to forecast LTV and ROI
Time point 2:• Algorithm
absorbs new information and adjusts.
• Reforecast LTV and ROI with adjusted algorithm
End of life cycle:• Actual customer
LTV and ROI
New Information from TP1:Customer behavior and performance
Time point N:• Algorithm
absorbs new information and adjusts.
• Reforecast LTV and ROI with adjusted algorithm
New Information from TP N - 1:Customer behavior and performance
• With each algorithm adjustment forecast becomes more accurate increasing level of significance
• Ability to have customer LTV and ROI at any time point enables apples to apples comparison between different campaigns and publishers. As a result, marketing function can simultaneously optimize marketing budget while maximizing $ net profit from advertising.
• In addition to LTV and ROI forecast, platform delivers additional information on acquisition quality and efficiency, customer profile mix, and some other KPIs
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Know Your Customer
• Customer segmentation is a key to provide optimal CRM strategy and incrementally increase customer engagement and response by customizing message.
• Departure from classic RFM model, where one size fits all, and acceptance of new two dimensional model provides much better ability to customize message and adapt it to real interest and life cycle stages of each customer.
Communication strategy A1
Communication strategy A2
Communication strategy A3
Communication strategy B1
Communication strategy B2
Communication strategy B3
Communication strategy C1
Communication strategy C2
Communication strategy C3
Customer:• Demographic variables• Behavior• Site utilization
Segmentation Algorithm
Segment A
Segment B
Segment C
Life Cycle Stage 1
Life Cycle
Life Cycle Stage 2 Life Cycle Stage 3
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Proactive Optimization of User Experience
• Proactive assessment of the probability of cc collection enables us to offer appropriate subscription plan as a default. In this way we increase number of customers who achieve premium status while increasing revenue.
• Proactive optimization through propensity modeling (estimating likelihood of the event) could create competitive edge and ultimately wow factor for your product.
Customer:• Demographic variables• Behavior• Site utilization• Transactions
Collection PropensityModel
High
Moderate
Low Like
lihoo
d of
col
lecti
ng
mon
ey fr
om a
cre
dit c
ard
Subscription Page:Show an appropriate default subscription plan based on likelihood of CC money collection
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• For small businesses with limited analytics and IT resources, placing SAS platform in the central integrative position enables flexible, proactive analytics function.
• In this case expert SAS skillset can offset limited body count and provide insight and information equivalent to that of much larger analytics team.