Get to know your multi-channel customer - Pentaho · 25.10.2005 · Tuesday, October 25th 2005...

Tuesday, October 25th 2005 PAGE 1

How is Business Intelligence helping you?BDMA Congress 2005

Get to know your multi-channel customer


GET TO KNOW YOUR CUSTOMERSCHEDULE

• The multi-channel problem • What is Business Intelligence?• Data warehousing concepts• How does Kettle fit in?• Examples• Questions


GET TO KNOW YOUR CUSTOMER

THE MULTI-CHANNEL PROBLEM

• New channels are constantly emerging• Each channel

– Own technical implementation– Own set of rules

• For example:Telephone: call centre databaseMail: order processing systemWeb: web statistics, click-stream analysisRetail: basket analyses, loyalty card systemsNew: SMS, GSM, interactive television, …




Common problems• Data quality problems in the OLTP systems• Information not available when needed• The Excel information “assembly” time waste• Everybody brings his own reality to the meeting • IT information improvement too long/expensive

Obviously users get annoyed.


GET TO KNOW YOUR CUSTOMERSCHEDULE

• The multi-channel problem• What is Business Intelligence?• Data warehousing concepts• How does Kettle fit in?• Examples• Questions



WHAT IS BUSINESS INTELLIGENCE?

• Collects data from business activity• Turns this data into information• Driven by mission statement• Management by measurement

Competitive advantage



WHAT IS BUSINESS INTELLIGENCE?

• 2 main parts: ETTL and reporting

RequirementsRequirements

Data

Warehouse

Repo rt s

Anal yses

Strat eg ies

Acquire data

ETTL

(Potential)customers

Internet

Fax

OLTP

Multi channel

data


GET TO KNOW YOUR CUSTOMER SCHEDULE




DATA WAREHOUSING CONCEPTS

• Definition– Historical database– Subject oriented– Uniformly defined– Multi-dimensional data model




• Multi-dimensional data modelGrouping in dimensions and facts

Star model

DimensionsDimensions

Category 2001 2002 2003 TotalLaptop 2.800.726 5.272.243 2.295.147 10.368.116 Monitor 138.681 297.037 145.263 580.981 PC 2.260.053 3.893.171 1.784.220 7.937.444 Peripheral 3.028.527 5.966.100 2.857.026 11.851.653 Printer 2.795.736 5.566.608 2.285.188 10.647.532 Server 2.210.015 3.591.230 2.044.897 7.846.142 Total 13.233.738 24.586.389 11.411.741 49.231.868

FactsFacts




• Star model– Do the complex work in advance– Dimensions linked to the fact tables– Very easy for a database– Easy reporting Date

CustomerProductOrder Line Fact Table

Order




• Link fact tables for more fun!• How many orders over €500 had

“apples” in it? For which customers?Date

CustomerProductOrder Line Fact Table

Order

Date

CustomerOrder Fact

Table

Order

Total order value > €500Total order value > €500

ApplesApples

Select a period of timeSelect a period of time



HOW DOES KETTLE FIT IN?

• Kettle– Performs the hard work for you– Manages / builds complex data warehouses– Automatically creates dimensions & facts– At a very low price– Allows very fast implementations

• More info on the web: kettle.beFree trial download available


TURNING DATA INTO BUSINESSSCHEDULE




EXAMPLES | CUSTOMER SEGMENTATION

CUSTOMER SEGMENTATION




• Customer segmentation (Staples EU)– Divided customers into segments

• New• Retained• Loyal• At-risk• Lost• Recovered

– We look at the purchases of each individual customer over a period of time




• Every week we generate a number of KPI– Number of orders– Turnover

• Every week we generate a number of KPI– Number of orders– Turnover

Date

CustomerProductOrder Lines

Date

CustomerCustomer Segment

Sales KPI

Sales Group




• Typical report• RFM model exploration

Number of customersSales last 6 months (in €) New Retained Loyal At-risk Recovered Lost Total0-50 234 137 178 13 23 7 59250-100 345 732 952 0 46 0 2075100-500 149 459 597 0 96 0 1301500-2500 6 107 139 0 23 0 2752500-5000 4 75 98 0 19 0 1965000+ 1 46 60 0 4 0 111Total 739 1556 2024 13 211 7 4550

Interesting customers for marketing?Interesting customers for marketing?




• Other possible uses:– Top 100 customers per segment– Turnover per segment– Increase in turnover vs. last week– List of “At-risk” customers with lifetime

turnover of more then €10.000– Observe effect of marketing efforts– Total turnover (year to date) of “New”

segment customers in January 2005.



EXAMPLES | BASKET ANALYSIS

BASKET ANALYSIS




• What products are sold together?– Printers & Ink– Wine & crisps– …

• What products are not sold together?• We look at each individual product

and examine the baskets




• Generate the relationships between 2 products in the same basket

Date

ProductCustomer Order

Basket

Date

CustomerProduct Order

Basket

The same basketThe same basket

The same periodThe same period

Different productsDifferent products




• Find statistically meaningful combinations

Occurrences Product 1 Product 2 Product 3 Product 4 Product 5 TotalProduct 1 2,00 27,00 6,00 9,00 44Product 2 2,00 1,00 4,00 5,00 12Product 3 27,00 1,00 3,00 9,00 40Product 4 6,00 4,00 3,00 - 13Product 5 9,00 5,00 9,00 - 23Total 44,00 12,00 40,00 13,00 23,00 132

Occurrences Product 1 Product 2 Product 3 Product 4 Product 5 TotalProduct 1 1,52% 20,45% 4,55% 6,82% 33,33%Product 2 1,52% 0,76% 3,03% 3,79% 9,09%Product 3 20,45% 0,76% 2,27% 6,82% 30,30%Product 4 4,55% 3,03% 2,27% 0,00% 9,85%Product 5 6,82% 3,79% 6,82% 0,00% 17,42%Total 33,33% 9,09% 30,30% 9,85% 17,42% 100,00%




• Sorted by relevanceA B %Product 1 Product 3 20,45%Product 1 Product 5 6,82%Product 1 Product 4 4,55%Product 2 Product 5 3,79%Product 3 Product 4 2,27%Product 3 Product 2 0,76%… … …Product 4 Product 5 0,00%




• Data mining also possible– Data is ready to use– Wide range of possible algorithms

• The type of channel is typically a part of the basket (order) dimension

• You can select the customers that bought certain combinations



EXAMPLES | MULTI CHANNEL REPORTING

MULTI CHANNEL REPORTING




• Extract information from the channel source systems

• Recover promotional codes

Call centerCall center

CRM systemCRM system

WebsiteWebsite

CampaignsCampaigns

ETLETL Data Data WarehouseWarehouse


Direct mail sent Customer



• Keep track of customer/campaign relationships!!!

Date

Campaign

Date

Customer Orders

Basket / Ordercatalog catalog

promotionpromotionpromotion codepromotion code

Promotion codePromotion codeChannelChannel




NuCa 2CaCa 5CaTVMa

mber of ordersmpaign 1 2 3 4 5 6 7 8 9 10 11 1talog Jan/2005 5 26 17 9 5 3 2 1talog Jun/2005 56 36 16 12 8 4talog Sep/2005 26 47 23 16 Add April 2005 86 19 2gazine August 2005 36 23 9 1

2005




• Identify your channel- Promotion code on magazines, web-pages- Different telephone numbers in TV adds- Product codes in catalogs- Vouchers, coupons, …

- Be creative!




RESUME



QUESTIONS | REMINDER

• BI + Data warehousing is good way of managing multiple channels

• Solutions are not expensive• Can be implemented in a short period

of time• Kettle removes complexity• Data Warehouse In A Week



QUESTIONS | REMINDER

• Questions

Get to know your multi-channel customer - Pentaho · 25.10.2005 · Tuesday, October 25th 2005...

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