Get the Real Pulse on your Customers Thinking with Predictive Analytics

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1 Catherine Frye Business Analytics Solutions Manager, IBM Joseph Mahoney Client Technical Professional, Business Analytics, IBM Get the Real Pulse on your Customers Thinking with Predictive Analytics

2 Today s Agenda How the Empowered Customer Changes the Game for Market Research Delivering Richer Customer Insights from Survey Text Meeting the Changing Survey Needs of Market Research

3 How the Empowered Customer Changes the Game for Market Research 3

4 Today s empowered customer puts businesses to the test 75% do not believe companies tell the truth in ads 78% of consumers trust peer recommendations 86% use multiple channels 4 in 10 Smart phone users search for an item in a store 58% are more priceconscious today than a year ago 80% of CEOs think they deliver a superior customer experience 8% of their customers agree 4-5x more than average is spent by multi-channel buyers Source: Sources of statistics from Smarter Commerce Stats and Facts Feb ppt

5 CxOs aren t just listening to customers; they are compelled to act and change course, in response to the direct influence of the customer Customer clout: customer influence on the enterprise 10 % As customers gain more power over the business via social media, their expectations keep rising and their tolerance keeps decreasing. 36 % 54 % influenced to a large extent 54 % CIO, Retail, Turkey Large extent Some extent Limited extent 5

6 CEOs share control with customers and expect their influence on business strategy to grow the most Areas of the business where CEOs want to include customers New product and service definition 82 % 90 % Product/service testing 71 % 75 % Customer policies and procedures development Business strategy development 43 % 59 % 60 % 72 % Pricing structure development 48 % 56 % Environmental and social policies development 33 % 50 % Product/service sourcing 36 % 45 % Privacy and security policy validation 33 % 44 % Today 3 5 Years 6

7 Close collaboration with customers is a universal ambition CxOs plan to collaborate much more extensively with customers 90 % 46 % 96 % more Today 90 % 3 5 Years 46 % 7

8 Translate customer insight to interactions that drive loyalty & value Increasingly Empowered Consumer Unlimited access to informa0on, ability to share experiences instantaneously Raised expecta0ons of product, service, delivery due to global compe00on Mul0- channel ability has changed dynamic between buyer & seller Organizations have 2 seconds; the elevator ride to connect with the customer. It is the single moment of truth. Limited Organiza9onal Insight Unable to use knowledge of past & present events to increase customer value Incomplete view of customer at 0me of interac0on Inconsistent delivery of service due to lack of visibility across organiza0onal silos Source: Sources of statistics [from Smarter Commerce Stats and Facts

9 Analytics delivers smarter decisions and smarter outcomes for marketers across their business What if Marketing Operations...could understand which programs were best performing across any touchpoint or segment? Digital/Online... could optimize the placement and selection of all web offers at any time? Product/Brand Manager...could understand and quantify exactly how social media is affecting my business and the brand? CMOs...could deliver personalized and consistent value across all channels at any time to all customers? Marketing Research...could identify the best performing microsegments for new product offering? Demand Generation...could always deliver the customer the right offer at the right time at the right place? 9

10 As a market researcher how can I better meet the needs of my client constituents in better understanding empowered customers? How do I identify and help them become more intimate with audience segments? How can I help them target their messages more effectively?? How can I help my clients achieve a better ROI with their marketing investments? How can I help my clients use open ended survey data to get deeper insights on key segments? How can we use survey data to get better understanding of sentiment? 10

11 The need to better understand the end customer is clear As a market researcher how can you better: Extend and expand your survey reach and value? Analyze free-text responses alongside categorical data? Improve partnering with your customer to provide them with the needed strategic foresight?

12 Delivering Richer Customer Insights from Survey Text 12

13 With power shifting to the customer, Market Research teams need to better help their clients: Service their customers flawlessly, predict and drive customer loyalty Understand and an0cipate their customers behaviors and needs based on insights across all channels Market, sell and fulfill the right product and service at the right price, 0me and place 13

14 Making the shift from traditional to analytics-driven Marketing Research Challenges Solutions Basic survey research is being commoditized Increasing competition with DIYs Mobile is accelerating rapidly as a viewing channel are your customers paying attention? Explosive growth in online virtual focus groups Reporting to predictive insights Breaking down data silos and combining disparate types of data Moving beyond traditional market research Providing analytic and reporting tools versus remaining project based Incorporating social media research and co-creation by listening, talking, energizing, supporting, and embracing

15 How Analytics can help Challenges Analytics Insights More data More data types Unstructured Attitudinal Sentiment Anticipate attitudes and behavior Combine with and complement other data sources Avoiding the bag of words Predictive Value Clearly distinguish sentiment and positive, negative statements 15

16 360 degrees of the customer 16

17 What are most immediate benefits of these insights? Ability to obtain a richer, more complete view of the people you are surveying your client s customers Exact word usage provides a researcher far deeper insight into their true thinking Allows a marketing researcher to avoid framing questions as well as influencing the possible answers Limits the possibility of omitting something really important Open ended questions allow respondents the ability to answer as they choose without constraints

18 Supporting this 360 degree view is sometimes challenging! Manually coding open-ended data is difficult and subjective Manually extracting value from surveys and open-ended responses is tedious and costly Validating the resulting data can be very time consuming and challenging

19 Demonstration SPSS Text Analytics for Surveys 19

20 PGM Holdings K.K. employs business analytics to improve customer satisfaction and increase sales > 50% gain in net income due to dramatic rise in customer attendance > 10% increase in reservations driven by coordinated marketing campaigns > 7% rise in sales enabled by precise matching of customer expectations and product offerings Business Challenge: Formed through multiple mergers and acquisitions of diverse golf course properties with dissimilar customer information systems, PGM lacked a comprehensive understanding of its diverse customer base, preventing a the development of effective, personalized marketing campaigns to reach its entire customer base. The Smarter Solution: PGM implemented a sophisticated business analytics solution that captures customer information from dozens of heterogeneous systems to perform data mining, entity analytics and predictive modeling to deliver deep insight about customer needs, preferences and behavior. The solution enabled PGM sales professionals to design precisely targeted marketing initiatives to reach the company s 1.6 million member customer base, increasing sales and profits.

21 Meeting the Changing Survey Needs of Market Research 21

22 Castorama Optimizing survey results with predictive > 3 times more market research surveys conducted at a national level. > 4 times more local marketing initiatives. > Increases customer loyalty with more targeted, effective marketing campaigns. Business challenge: Castorama wanted to improve the effectiveness of its direct marketing campaigns by better exploiting the information held in its extensive customer database. Analytics journey: Using IBM SPSS Modeler for data mining and IBM SPSS Data Collection to conduct surveys and market research, the company has developed a highly effective direct marketing strategy that is helping to support better business growth. With IBM SPSS we have optimized the process of targeting our mail-shot and SMS campaigns, tripled the number of national surveys and quadrupled the number of local initiatives that we run at the request of particular stores. Cédric Packowski, Database and Customer Intelligence Manager, Castorama

23 IBM SPSS Data Collection Overview IBM SPSS Data Collection Delivers an accurate view of customer attitudes and opinions Combines a robust market research survey tool with enterprise-level multichannel customer feedback management capabilities Integration enables organizations to Leverage advanced analytical and reporting capabilities with IBM SPSS Statistics, IBM SPSS Modeler and IBM Cognos 23

24 IBM SPSS Data Collection Response to survey question is scored in real-time Enhanced dynamic feedback Integration with IBM Cognos BI

25 Demonstration SPSS Data Collection 25

26 Additional Resources IBM SPSS Data Collection IBM SPSS Data Collection Trial Capture Customer Feedback and Improve Outcomes Demonstration: Make your Market Research firm invaluable to clients Gaining Full Value from Survey Text From Concept to Insight: Author Powerful Surveys Quickly and Easily IBM SPSS Text Analytics for Survey Trial 26

27 In Summary Ø Help your customers better understand the empowered customer Ø Utilize ALL data types structured, unstructured Ø Move toward continuous engagement especially in mobile channel as it expands rapidly Ø Reap the rewards of combining survey insights with operational data and predictive analytics 27

28 Please contact us for further information: Phone: Website:

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