SPSS Predictive Analytics: Customer Intimacy on a Smarter Planet

Transcription

1 Ben Stonehouse, SPSS Predictive Analytics Solutions IBM Business Analytics SPSS Predictive Analytics: Customer Intimacy on a Smarter Planet Business Analytics software

2 What does Smarter Planet Mean to Me? Smarter Education? Smarter Retail? Smarter Healthcare? Smarter Telecommunications? Smarter Government? Smarter Banking & Insurance?

3 Smarter Planet in SPSS Client Examples Smarter Environmental Protection Marwell Wildlife, a conservation charity, helps secure a future for an endangered species Determining the main threats facing the Grevy s zebra in the wild Understanding critical ecosystems interactions Investigating the relationship between nomadic herdsmen and Grevy s zebra Working with communities to implement conservation measures that address threats and protect key resources Smarter Law Enforcement The City of Richmond Police Department prevents crime before it happens Optimized deployment of police forces Lowered homicides by 35% year over year Robberies down by 20% Smarter Healthcare Sequoia Hospital reaches record survival rates Reduced mortality rate for cardiac surgery to 1.7% in 2008 from 3.8% in 2003 Best record nationally for survival from valve replacement over the past six consecutive years Reduced doctors diagnostics requests from several weeks to near real-time speed Smarter Insurance Infinity Insurance dramatically reduced the cost of claims Reduced time to refer suspicious claims for investigation from 14 days to under 24 hours Achieved an ROI of 403% (payback in 3 months)

4 The End of the Averaged Customer 95% of Top Performers Consider Getting Closer to Customers Their Top Priority 95% 83% Getting closer to customers 14 % more Others Standouts To surprise customers requires unexpected ideas through interactions of people with diverse perspectives. Shukuo Ishikawa President and CEO, Representative Director, NAMCO BANDAI Holdings, Inc. Japan Our customers want personalization of services and products. It is all about the market of one. Tony Tyler CEO, Cathay Pacific Airways, Hong Kong Source: IBM s 2010 Global CEO Study Capitalizing on Complexity (1,541 CEOs, 60 nations, 33 industries)

5 Smarter Planet Means Moving Away from the Broad Brush Impacting Customers Uniquely Throughout the Lifecycle One to One Research & Purchase Advocate Purchase More The Broad Brush Get Customer Service Use

6 Reaching Customers in the right way At the Moments that Most Influence Their Purchases Most influential touch points by stage of consumer decision journey, for competitors and new customers, % of effectiveness Store/agent/dealer interactions 12 Consumer-driven marketing Word-of-mouth Online research Office and/or print reviews Past experience Company-driven marketing Traditional advertising Direct marketing Sponsorship In-store product experience Salesperson contact Initial consideration set Active evaluation Closure

7 Customer Intimacy Means Different Focus at Each Stage Marketing Social Intelligence Dialog Advocate Purchase More Extension Research & Purchase Selection & Acquisition Sales Feedback Get Customer Service Feedback Management Support Use Retention Support/Services

8 End to End Predictive Analytics in the Customer Lifecycle Social Intelligence Social feedback analysis Influencers program management Brand monitoring Customer segmentation Marketing Research & Purchase Lead management Channel optimization Optimal trigger marketing Customer insight analysis Competitive value assessment Loyalty value assessment Value perception communication Advocate Purchase More Up-sell/cross-sell management Share of wallet analysis Assortment planning Sales Market Basket Analysis Next Best Offer Prospect assessment Value pricing optimization Customer dialog management Prescription/recommendation services Get Customer Service Use Buying process optimization Proactive activation service Feedback Management Employee empowerment Retention risk management Warrantee analysis Support/Services Support channels monitoring

9 How Predictive Analytics Provides Value: Harmonizing Decisions Across the Enterprise Define the Strategy Run the Business Years Months Weeks Days Hours Now Time to Business Impact Improve senior management visibility with Key Performance Predictors Improve policy makers decisions with Forecasts and Optimization Help individual contributors take the Next Best Action Strategic Tactical Operational

10 Operationalizing analytical results: Branches Churn risk Het is voor U voordeliger om een sms voorraad 50 aan te sluiten. Johnson Churchilllaan AM Amsterdam Predictive cross-sell suggestion Customer value indicator

11 Decision Management in Action Leveraging Service Calls as Sales Opportunities C Cross-sell? <context data> <customer data> C Potential Campaign A Valid in this case? No Margin Response Probability Expected Value B Yes 90 54% 49 C Yes % 64

12 Leveraging unstructured data at the Point of Contact 1. CSR enters live customer comments Julie Chesson 2. When saved, comments are analyzed using Predictive Text Analytics minute_charges, new_phone 2 New plan request Does not have enough minutes so is getting charged penalties. Also, phone is outdated. Would like a new phone asap Customer churn score is generated and displayed in real-time 3 RET -600 Midwest minutes - $19/mo As a valued customer, we would like to offer you a special promotion of 600 Midwest minutes for only $19/mo. Can I switch you to your personal plan now? Voluntary Churn High 3 Matching Offers 4 4. CSR script responds dynamically

13 The SPSS Platform including Decision Management 6.0 Delivers accurate, high-value, high-volume decisions at the appropriate point of interaction Predictive models Business Policy Optimization Best practices decision making for industry problems Completely configurable solution templates Focused at the point of interaction The power of predictive analytics linked to business outcomes: In the hands of the business, in language they can understand Closed loop visibility and continuous improvement Takes Predictive Analytics out of the lab and into the operation An I.T. friendly fully governed platform

14 SPSS Predictive Analytics a Key Part of the IBM Stack Operational Systems & Point of Interactions Predictive Analytics & Optimization Business Intelligence Planning & Forecasting Business Rules & Events Process, Event & Case Orchestration Collaboration Environment Data & Content Infrastructure

15 Customer Intimacy Social Intelligence Marketing Research & Purchase Advocate Purchase More Sales Get Customer Service Use Feedback Management Support/Services

16 Customers are the New Intellectual Property (Keep the promise) Customer Intimacy Decision Management (Make the promise) Leadership (Deliver the promise) Operational Excellence