NRF 2013 - Drive Profitable Customers with Analytics -Alteryx & Southern States Cooperative
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Transcript of NRF 2013 - Drive Profitable Customers with Analytics -Alteryx & Southern States Cooperative
Closing the Gap Between the Customer and the Profitable Customer with Analytics
Paul Ross, VP of Industry and Product Marketing – Alteryx
Greg Bucko, Manager of Customer Insights – Southern States Cooperative
Customer Analytics Are the Start of The Key Strategic Decisions In Retail
Customer Marketing
InsightHyper Local
Merchandizing
Faster Site Selection
Traditional Customer Analytics Model Has Been Disrupted
Awareness & Influence
Decision Making
PurchaseUse & Maintenance
Data Sources
Outbound Inbound
AdvertisingPR
PromotionSocial
…
SocialContentLoyalty
SEO…
Data Sources
Traditional New
CampaignSurvey
Compete…
SocialSEO
Clickstream…
Data Sources
Traditional New
PromotionPOS
Location…
Golden PathClick stream
Cart…
Data Sources
Traditional New
CRMServicesSurvey
…
SocialForumsUsage
…
Traditional Customer Analytics Model Is Just Wrong
Awareness & Influence
Decision Making
Purchase
Use & Maintenance
Big Data is Great But Context is King
Cloud Data
“I just want to understand what we should be doing…”
Solution Equation for the 360 Degree Customer Project
Large IT Data Project
Multiple Tools A Lot of Time
Fail
Who is solving the problem without a long IT project?
How Are They Solving this Challenge?
Data Artisan
Capabilities of Data Scientist that Drive Largest Value Today
Marketing or Customer Analyst
Utilize & Integrate any data source
Integrate
Rapid design of predictive analytics with unique spatial
understanding
Analyze
App &
Data
All Relevant Data
Enrich
Packaged Market & Customer Data
Consumerize the use of
sophisticated analytics
Southern States – Who We Are
12
Founded in 1923, ~$2 B in annual revenues from retail and wholesale operations
Primary customers are farmers and rural Americans
Provide products and services essential to raising crops and livestock as well as farm supplies, home heating, lawn, and garden care
Multiple-channel distribution network with 1,234 storefronts across 23 states
Experience
Attitudes & Beliefs
Sales History
COMPLETE CUST
OMER
CHALLENGE: Understand the drivers of PROFITABLE
Loyalty and recommend strategies to increase PROFITABLE Loyalty
Survey Data Survey Data Transactional Data
Step 1: Paint The Complete Customer Picture
Driving Profitable Loyalty
LOYALTY
Preference
ProfitabilityPromotion
Step 2: Define and Measure Loyalty for Southern States
Loyalty is measured by customer segment along a spectrum
Not one but several metrics are combined
Like the legs of a stool, if one is missing Loyalty collapses
LOYALTY3-D
Driving Profitable Loyalty
Step 3: Explore the Data and Identify the Drivers of Loyalty
Combine, cleanse, explore, and analyze the data using Alteryx
Combine transactional data with survey responses
Cleanse data and calculate basic descriptive statistics
BASIC
EXPLORATORY
PREDICTIVE
Look for relationships (Association Analysis)
Reduce variables / create consts. (Principal Components)
Find unique segments (K-Means Clustering)
Identify the Drivers of Loyalty and Quantify the FinancialImpact of Improved Loyalty (Linear Regression)
Driving Profitable Loyalty
Step 4: Turn the Drivers of Loyalty Into Strategic Imperatives
Critical Improvement Opportunities
Promote, Expand, & Maintain
Negative Drivers
Positive Drivers
Out of dozens of potential drivers, only a handful will rise to the top
This exercise helps focus the corporate strategy on what is MOST IMPORTANT!
Driving Profitable Loyalty
Connecting and Cleansing the Data
Running Basic Cross-tabs and Other
Calculations
Using Predictive Macros to Identify Drivers and
Quantify Impact
Exploring the Data
Step 5:
MEASURE! MEASURE! MEASURE!
Driving Profitable Loyalty
Next Steps
Ask Greg How He Does What
He DoesGet a Demo at
Booth C242
Visit http://
gallery.alteryx.com
• Big Data• Big Data Analytics• Big Data Analysis• Humanizing Big Data• Strategic Analytics• Predictive Analytics• Data Scientist• Data Artisan• Data Analyst• Big Data Gap• Unstructured data• Analytics Platform• Unstructured Data
• Alteryx• Paul Ross• Greg Bucko• Southern States Cooperative• Customer Loyalty• Retail Analytics• Alteryx Analytics Gallery
Key Terms