Driving Better Marketing Results with Big Data and Analytics David Corrigan, IBM, Director of Product Marketing

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1 Driving Better Marketing Results with Big Data and Analytics David Corrigan, IBM, Director of Product Marketing

2 Optimizing Marketing with Big Data and Analytics Leverage Social Media Datacentric Marketing Understand Every Customer Deeper Campaign Analysis and Insight Understand brand and market sentiment

3 Only Of Available Data is Used Forrester Research: Can You Give The Business The Data That It Needs? by Michele Goetz, November 13, 2013

4 Data-centric Marketing - Challenges 2013 IBM Corporation 4

5 Interconnected consumers - today The Web Savvy Consumer Use websites for price comparisons, promotions, services and to share their opinions with consumers Website activities Percent that selected Yes for activity 100% 80% 60% 40% 20% 0% 92% Compare prices 79% Access and print digital coupons 75% Access personal account information 72% Schedule product deliveries 65% Write or read product reviews 62% Access live customer help 33% Schedule appointments 23% Import your social network product preferences from this retailer 21% Shop live with your social network Source: IBM Institute for Business Value Analysis, Retail 2010; population who selected website technology, n=

6 Interconnected consumers future When questioned about social networks 33% of consumers said that they are likely to follow a retailer How likely are you to follow a retailer on a social network, such as Facebook or Twitter? Very likely 12% = 33% are Likely to follow a retailer Likelihood Somewhat likely Neither likely nor unlikely 18% 21% Somewhat unlikely 13% Very unlikely 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: IBM Institute for Business Value Analysis, Retail 2010, n=32,087 Percent selected

7 Social Media Influence 90% of consumers trust peer recommendations Source: Socialnomics, June Billion 7 People worldwide visited a social networking site. Source: Insites Consulting Social Media around the World 2011

8 The Shifting Landscape Consumers now have unlimited access to information and can instantly share it with the world Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller. Consumer expectations of service, price and delivery are soaring. This is changing the entire way products are sourced, manufactured and distributed and making business more complex than ever. 12/5/ million Number of people printing online coupons, up 20% vs $100+ billion Amount of sales lost to manufacturers due to out of stock inventory* *Frost & Sullivan and 75% Percentage of people who believe companies don t tell the truth in advertisements Brazaar voice, Social Commerce Statistics 8

9 Marketing Benefits from Social Media Analysis Know More About Your Customers Predict Customer Actions Understand Product Sentiment Marketing & Competitive Intelligence

10 Harnessing the Largest Focus Group in the World Purpose Understand public sentiment towards an event: movie trailers Deeply understand the potential customer profile: gender, occupation, intent to watch Alter marketing launch plans based on insight Background 1.1 Billion Tweets analyzed 5.7 Million blogs/forum posts 3.5 million messages Also: Facebook, Google+, Tumblr, Flickr

11 Demo Media & Entertainment Social Media Analytics

12 Conclusion Actionable Insight Adjust the marketing launch plan before execution begins Creative adjust messaging Trailers alter scenes shown Budget re-direct, increase, or decrease Execution theatre placement, advertisement placement Image: jannoon028

13 Product Brand Check What Do Customers Think About My Product? The launch of a permanent mousse coloration product drove significant share of voice over its well established competitors... achieving the highest share of positive statements among all competitive products. Using CCI, Henkel discovered a competitor weakness related to underlying category attributes valued by consumers A 100% increase in analyzed relevant discussions Sophisticated analyticsthat drove decision making Increased positive share of voice Confirmed and validated market strategy

14 Social Media Brand Analysis / Sentiment Tracking 2013 IBM Corporation 14

15 Case Study: Customer360 views for Lead Generation & Brand Management Retail bank wants to improve target marketing & understand customer reaction to their brand Social media consumer feedback analysis combined with internal data Over 100 Million social media consumer profiles built and used in the analysis I'm thinking about buying a home in Buckingham Estates per a recommendation. Anyone have advice on that area? #atx #austinrealestate #austin Trend of Share of Voice among customers and US population over so I am moving my $ to a credit union. Recommendations in SF? Identify product ownership among customer segments expressing travel intent in social media Share of Voice Travel Intent Categorization 15 Travel intent by internal segments Segment2 credit-card ownership

16 Case Study: Demand Forecasting - Retail Analyze purchasing preferences and behavior to forecast sales for new and existing products Social media consumer feedback analysis used together with internal product catalogs and sales data Over 40 Million social media consumer profiles built and used in the analysis Social Media Demand Forecasts Customer Satisfaction Richer Customer Profiles Improved sales forecast accuracy using Buzz and Sentiment from social media Buzz, Intent, Sentiment and Ownership at multiple hierarchical levels (products, families, brands and categories) Consumer Feedback for various product categories 16

17 Constant Contact Transforming Marketing Campaign Effectiveness with IBM Big Data Need Analyze 35 billion annual s to guide customers on best dates & times to send s for maximum response Benefits 40 times improvement in analysis performance 15-25% performance increase in customer campaigns Analysis time reduced from hours to seconds 17 Home

18 Elie Tahari combines fashion savvy with powerful analytics Need Enhance decision-making and keep pace with customer demand and provide faster access to actionable information about current production and inventory as well as future demand Benefits Able to predict customer orders 4 months in advance with 97 percent accuracy Reduced reporting time from days to minutes and reduced supply chain logistics costs by 30 percent Combined real-time sales, inventory and logistics information with near-real-time data warehouse design to update all transactional data within 5 minutes or less 18 Home

19 IBM s POV on Big Data & Analytics 1. Build a culture that infuses analytics everywhere. 2. Be proactive about privacy, security and governance. 3. Invest in a Big Data & Analytics platform.

20 Systems Management BIG DATA PLATFORM Application Development Discovery IBM s big data platform Accelerators Hadoop System Stream Computing Data Warehouse Information Integration & Governance Speed Simplicity Confidence Data Media Content Machine Social

21 Announcing InfoSphere Extended 360º Optimize every customer interaction by knowing everything about them Requirements Provide the Core of Confidence across customer data Create a connected picture of the customer Mine all existing and new sources of information Explore social media to uncover sentiment about products Add value by optimizing every client interaction Value Proposition MDM creates an accurate and consistent view of customer. Available Q4 Data Explorer links the golden record to unstructured content from internal & external sources for an extended 360 degree view

22 Demonstration Enhanced 360 View of the Customer

23 Enhanced 360º view of the customer (visualization) SOURCE SYSTEMS CRM Name: Address: Address: J Robertson 35 West 15 th Pittsburgh, PA ERP Name: Address: Address: Janet Robertson 35 West 15 th St. Pittsburgh, PA Legacy Name: Jan Robertson Address: 36 West 15 th St. Address: Pittsburgh, PA Master Data Management 360 View of Party Identity First: Last: Address: City: State/Zip: Gender: Age: DOB: Janet Robertson 35 West 15 th St Pittsburgh PA / F 48 1/4/64 Unified View of Party s Information BigInsights Streams Warehouse Unified View of Customer s Information

24 System for Analytics Optimized exclusively for analytic data workloads x faster than traditional custom systems 20x concurrency and throughput for tactical queries Patented MPP hardware acceleration No indexing, no tuning, no storage administration High speed data ingest Richest set of in-database analytics 24

25 Let s Simplify Big Data: Announcing IBM PureData System for Hadoop Designed to: HCatalog HDFS Visualization MapReduce Simplify the building, deploying and management of a Hadoop cluster Pig Hive Development Tools Speed the time-tovalue for Hadoop and unstructured data Maximize the overall analytic ecosystem Deploy 8x Faster 1 Provide enterprise security and platform management 1 Based on IBM internal testing and customer feedback. "Custom built clusters" refer to clusters that are not professionally pre-built, pre-tested and optimized. Individual results may vary.

26 In Conclusion Getting Started Get Requirements from Business Strategy Learn from your Peers Develop a Technology Roadmap 2013 IBM Corporation 26

27 Your Next Step: Visit Ibmbigdatahub.com Conversations and resources focused on: Leveraging big data for marketing Client case studies How-to-get started assets

28 Questions? David Corrigan Director of Product Marketing, InfoSphere Information Management Software Group Toronto, Canada Software Lab Office: Mobile:

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