Neil Hayward Customer Intelligence Solutions Program Manager SAS EMEA Copyright 2003, SAS Institute Inc. All rights reserved.
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1 SAS Marketing Optimization Neil Hayward Customer Intelligence Solutions Program Manager SAS EMEA Copyright 2003, SAS Institute Inc. All rights reserved.
2 Business pain! I m not getting the best financial return on my marketing activities! My existing marketing solutions do not provide me with an effective way of prioritizing which customers get which communication, other than rank ordering! I don t have an effective way of defining, evaluating and enforcing a customer contact policy! I have no way of knowing the economic impact of increasing channel capacities or spending more money on marketing activities! I need to improve the effectiveness of lead assignment, especially in cost-intensive channels such as field sales and call centre Copyright 2003, SAS Institute Inc. All rights reserved.
3 SAS Marketing Optimization SAS Marketing Optimization enables companies to increase ROI on marketing campaigns by:! Assigning optimal offers to each customer or segment! Subject to real-world constraints such as budget, channel capacity and customer contact strategies.! And driving these offers direct to the customer via SAS Marketing Automation Copyright 2003, SAS Institute Inc. All rights reserved.
4 Customer focus Product Focus Channel Marketing Human / Physical Constraints Capacity Corporate Objective Strategy Customer Value Offer Profitability Commercial Budgets s Channel Profitability Channel Preference Optimisation Process Analytical Recency Response Propensity Response potential Multi-stage Communication Copyright 2003, SAS Institute Inc. All rights reserved. Triggered Campaign Strategy Real-time/ Real-time/ Scheduled/ Scheduled/ Ad-hoc Ad-hoc Segment migration Strategy Frequency
5 Customer focus Product Focus Channel Marketing Human / Physical Constraints Capacity Corporate Objective Strategy Customer Value Offer Profitability Commercial Budgets s Channel Profitability Channel Preference Optimisation Process Analytical Recency Response Propensity Response potential Multi-stage Communication Copyright 2003, SAS Institute Inc. All rights reserved. Triggered Campaign Strategy Real-time/ Real-time/ Scheduled/ Scheduled/ Ad-hoc Ad-hoc Segment migration Strategy Frequency
6 SAS Marketing Optimization! Optimizes the value of your marketing communications on the basis of: Marketing budgets Multiple channels Channel capacity/availability and cost Sales and service communications Customer channel preferences Communication frequency and recency Copyright 2003, SAS Institute Inc. All rights reserved.
7 SAS Marketing Optimization! Handles: All Campaigns types Multi-stage, event-driven Acquisition, Cross / up sell, retention etc! Utilises: Likelihood of response Expected value of response Cost of channel/offer! Deploys: True Optimisation! Copyright 2003, SAS Institute Inc. All rights reserved.
8 Simple optimization example Customer 1 has two potential offers:! Offer A through call center with an expected value of $100! Offer B through direct mail with an expected value of $75 Customer 2 has two potential offers:! Offer C through call center with an expected value of $90! Offer D through direct mail with an expected value of $20 Due to channel capacity constraints only one call center contact can be attempted. Copyright 2003, SAS Institute Inc. All rights reserved.
9 Comparison of results Rules approach! Customer 1 would receive offer A through call center with a value of $100! Customer 2 would receive offer D through direct mail with a value of $20! Expected return is $120 Marketing optimization! Customer 1 would receive offer B through direct mail with a value of $75! Customer 2 would receive offer C through call center with a value of $90! Expected return is $165! Selects first offer from a ranked list: not optimal! Selects best combination of offers to maximize value Copyright 2003, SAS Institute Inc. All rights reserved.
10 Demonstration
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26 Results: Scotia Bank! Issue: Maximize return by efficiently using resources Multi-channel and multi-stage campaigns! Process: Evaluate multiple campaigns at once! Results: Uplift in ROI generated 50% increase over traditional selection methods Analyzed >70 offers at once for > 3M customers Copyright 2003, SAS Institute Inc. All rights reserved.
27 Optimising ROI Rules for Success! Identifying of all marketing opportunities! Accurate predictions of response rates and values! Understanding your costs! Going beyond rules true optimisation! Deploying contact recency and frequency appropriately! Understanding what-if sensitivity of budget, and capacity! Identifying the best optimisation scenarios! Integrating directly to communication delivery systems Copyright 2003, SAS Institute Inc. All rights reserved.
28 Questions?
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