Improve Your Marketing Campaign ROI with Predictive …...Improve Your Marketing Campaign ROI with...

Improve Your Marketing Campaign ROI with Predictive Analytics

Rajesh Shewani, Pre-Sales Leader – India/SAIBM Business Analytics – Cognos & SPSS

[email protected]

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Our world is becoming

INSTRUMENTEDOur world is becoming

INTERCONNECTED

Our world is becoming

INSTRUMENTEDOur world is becoming

INTERCONNECTEDVirtually all things, processesand ways of working are becoming

INTELLIGENT

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Transform Your Organizationwith Information

Inefficient Access1 in 2 don’t have access tothe information across their organization needed to do their jobs

Lack of Insight1 in 3 managers frequently make critical decisions without the information they need

Inability to Predict3 in 4 business leaders say more predictive information would drive better decisions

Variety of Information

Volume of Digital Data

Velocity of Decision Making

Source: IBM Institute for Business Value

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IBM is uniquely equipped for Business Optimization

• In addition to driving continued innovation across SPSS’s predictive analytics portfolio, we plan to leverage its strengths across many aspects of the broader IBM portfolio, increasing customer value

• We will be expanding expertise and capabilities for IBM’s new Business Analytics and Optimization (BAO) service line

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New ways of working to optimize decisions and actions

Lack of Insight

Inability to Predict

Inefficient Access

Variety

Volume

Velocity Sense and respond

Instinct and intuition

Automated

Skilled analytics experts

Back office

Predict and act

Real-time, fact-driven

Optimized

Everyone

Point of impact

New ways of working to optimize decisions and actions

Lack of Insight

Inability to Predict

Inefficient Access

Variety

Volume

Velocity Sense and respond

Instinct and intuition

Automated

Skilled analytics experts

Back office

Predict and act

Real-time, fact-driven

Optimized

Everyone

Point of impact

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Imagine If Your Decision Makers Could…

Physician Telco Call Center RepLoan Officer Retail Sales

Associate

…predict and treat infection in premature

newborns 24 hours earlier?

…apply inferred social relationships of

customers to prevent churn?

…adjust credit lines as transactions are

occurring to account for risk fluctuations?

…determine who is most likely to buy if offered discounts at

time of sale?

…optimize every transaction, process and decision at the point of impact, based on the current situation, without requiring

that everyone be an analytical expert

How can I capture and analyze information about how my

customers, prospects or employees are feeling?

How can I capture and analyze information about how my

customers, prospects or employees are feeling?

How can I predict behaviors and preferences so I can reduce churn, prevent fraud, maximize campaign

results and more?

How can I predict behaviors and preferences so I can reduce churn, prevent fraud, maximize campaign

results and more?

How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?

How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?

Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage

Analyses patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes

Predictive Analytics offers Unique Insights to Answer those Tough Business Questions

Introducing SPSS, an IBM Company

• A leading provider of predictive analytic software, services and solutions– Software – data collection, text and data mining, advanced statistical

analysis and deployment technologies– Services – implementation, training, consulting, and customization – Solutions – combine software and services to deliver high-value line-of-

business solutions; used for optimizing marketing campaigns, call center effectiveness, identification of fraudulent activity and more

• 40 years of experience and a broad customer base– 250,000 customers: 100 countries, 50 states, 100% of top universities

Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes

Enables decision makers to predict future events and proactively act upon that insight to drive better business outcomes

Enabling the Predictive Analytics Process

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Capture Predict Act

…

…

DataCollection

DeploymentTechnologiesPlatform

Pre-built Content

Statistics

Attract Up-sell Retain

TextMining

DataMining

Data Collection delivers an accurate view of customer

attitudes and opinions

Predictive capabilities bring repeatability to ongoing decision making, and drive

confidence in your results and decisions

Unique deployment technologies and methodologies maximize the impact of

analytics in your operation

Applying SPSS Portfolio to Accelerate Your SuccessExample: Customer Intimacy

Reduces customer defection, increases uplift from cross-sell/up-sell targeting, and improves acquisition of the “right” customers, by enabling decision makers to:

• Understand unstructured data that is found in everything from e-mails, call center notes, blogs, and open ended survey questions

• Identify drivers of customer behavior via survey analysis• Identify key performance predictors (KPPs) including customer

defection and outcome of particular customer interactions• Prioritize customer programs as part of real-time decision processes • View customer insights alongside key performance information

through standard IBM reports, analyses and dashboards

Success Stories: Customer Intimacy

Grow and Retain

“The power and ease of use of PASW Statistics enables the AMR Consumer Research department to perform more research than ever before and deliver timely reports while maintaining a small, dedicated staff.”

Grow“With SPSS, HSBC Bank USA effectively mines an

ever-growing file of customer data, creating predictive models to uncover cross-selling and “roll over” sales opportunities.”

Attract, Grow and Retain“SPSS solutions add intelligence to our business

ensuring efficiencies in pricing, marketing and reporting – something no company can afford to ignore in today’s business environment”

Business Scenario

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Business scenario for Banking Campaign Insight and Optimization

© SPSS 2009© SPSS 2009

Business Scenario: Cross-selling in Retail Banking

Customer ContactsPlenty of

customers to contact, but what would be the best

offer (if any) for each one?

© SPSS 2009© SPSS 2009


Customer Data- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …




© SPSS 2009© SPSS 2009



Predictive ModelsLikelihood to respond to each of the current marketing offers




© SPSS 2009© SPSS 2009


Next Best ActionBest 3 offers recorded for every customer individually

Customer ID 1 2 312435 A C F56437 B G D59235 H C -45276 - - -Etcetera






© SPSS 2009© SPSS 2009


Customer ContactsMarketing offers are personalized

based on Best Next Actions and mailed

to customers





© SPSS 2009© SPSS 2009


Key Performance Predictors and Campaign Results



to customers





© SPSS 2009© SPSS 2009


Automated UpdatesTo accommodate new offers and to apply customer contact rules




to customers





© SPSS 2009© SPSS 2009



Customer ID 1 2 3




to customers

12435 A C F56437 B G D59235 H C -45276 - - -Etcetera



© SPSS 2009© SPSS 2009


Predictive Modeling


Customer ID 1 2 3




to customers




© SPSS 2009© SPSS 2009

DecisionOptimization



Customer ID 1 2 3




to customers




© SPSS 2009© SPSS 2009



Integration with operational processes and systems




to customers




© SPSS 2009© SPSS 2009

Analysis, reporting and KPPs




Customer ID 1 2 3



to customers




© SPSS 2009© SPSS 2009



Analytical Asset & Process

Management



Customer ID 1 2 3




to customers


© SPSS 2009© SPSS 2009

Grow customer value





to customers





© SPSS 2009© SPSS 2009

“Market”





to customers





© SPSS 2009

Capture Predict Act


Campaign Data- Contact history- Response/purchases- Test campaigns- …

© SPSS 2009

AnalysesPredict who is likely to

respond, based on their customer profile

when receiving the campaign

Capture Predict Act



© SPSS 2009

Scoring

Marketing campaign process




Capture Predict Act



© SPSS 2009

Capture Predict Act

Key Performance Predictors and

Campaign Results






ScoringCustomer Data

- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …

© SPSS 2009© SPSS 2009

Customer ContactsOffer of the month

sent to all customers

Before predictive analytics:“Offer of the month”sent to all customers

© SPSS 2009© SPSS 2009

Customer Data- Demographics- Account Activity- Product Holdings

Predictive ModelLikelihood to respond to offer of the month



Step 1:Optimize offer of the month by not contacting customers

not likely to respond

© SPSS 2009© SPSS 2009

Step 2:Establish feedback loop to

measure the effect of subsequent improvements

Customer Data- Demographics- Account Activity- Product Holdings





© SPSS 2009© SPSS 2009



to customers




Future Steps:

• Roll out to other touch points• Customer Service Center• MyBanking website• ATM• Mobile banking

• Add retention offers

• Optimize across customers, offers, channels and time

• Introduce feedback strategies to uncover unmet needs for new product development

• Take risk predictions into account when making marketing offers Customer Data

- Demographics- Account Activity- Product Holdings- Channel Activity- Information Requests- Complaints- …



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Customers Experience a Measurable ROI

• 94% of customers achieved a positive ROI, average payback in 10.7 months

• Over 90% of users attributed an increase in productivity to SPSS

• 81% of projects were deployed on time, 75% on or under budget

“This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports”

Rebecca Wettemann, VP of Research, Nucleus Research

SPSS, an IBM Company Enables Next-Generation Decision Making

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• A leading provider of predictive analytic software, services and solutions with 40 years of experience and a broad customer base

• Enables decision makers across the organization to predict future events and proactively act upon that insight to drive better business outcomes

From sense and respondFrom sense and respond…………to predict and act!to predict and act!

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© Copyright IBM Corporation 2008 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

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