Customer Intelligence: Experiences Using SAS · customer lifetime value; implemented behavior...

Copyright © 2002 , SAS Institute Inc. All rights reserved.

Customer Intelligence:Experiences Using SASDonna ByrneSAS International


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Agenda

! Customer Intelligence! Operational Vs. Analytical CRM! CRM Methodology! The Learning Organisation

! Customer Experiences! Key Business Issues ! Telecom and Financial Services


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CRM Business Intelligence SystemCRM Transaction Processing

Front-office systems

CustomerTouch Points

Service

Support

Marketing

Sales

Call Centre Campaign Management

SystemFront Office

ERP Systems

Legacy Systems

eBusiness Systems Recommendation/ Decision Engine

Data Warehouse

Analytical Intelligence

Query & Reporting

Business Intelligence


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CRM Business Intelligence SystemCRM Transaction Processing

Front-office systems

CustomerTouch Points

Service

Support

Marketing

Sales

Call Centre Campaign Management

SystemFront Office

ERP Systems

Legacy Systems

eBusiness Systems Recommendation/ Decision Engine

Data Warehouse

Analytical Intelligence

Query & Reporting

Business Intelligence


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CRM Methodology

Aligning investment and resources to market opportunities and requirements

Right people, right channel, right time, right offer to build long term mutually beneficial relationships

Place the customer at the centre of the decision making process

Doing things right, deploying resource to match customer demand and value

Monitoring success and reporting back to the business to create an agile learning enterprise


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Customer Satisfaction

Time


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Time


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Time


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Focus on…

! Customer Retention ! Customer Life Time Value! Multiple Channels! Credit Scoring! Segmentation! Cross Sell and Up-Sell! Marketing Automation! Strategic Performance Management


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Churn management

Turkcell

Issue: Threatened with losing customers to a low-priced new entrant, especially in the 15 – 25 yr old target segment

Solution: Implemented a churn knowledge solution to predict potential churners and target specific segments with appropriate product bundling

Benefit: Now plans new tariffs and campaigns that are more appropriate to customer needs. Turkcell is also using customer intelligence to improve their collections process in order to minimize both costs and risk.


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Issue: Develop CRM strategies to reduce increasing attrition rates and understand customer behaviour for up sell/cross sell

Solution: Implemented CRM solution with key objectives in cross and up selling, credit risk management, customer retention and service.

Benefit: Response rate to marketing Campaigns increased to 30% from 3%Cross-selling ratio tripled

Royal Bank of Canada


14Copyright © 2001 , SAS Institute Inc. All rights reserved.

Issue: Decreasing customer retention rates

Solution: Developed statistical models to predict churn-risk customers and drive tailored preventative marketing actions to individual customers; combined data from multiple sources to create actionable customer intelligence

Benefit: Improved retention rates

Measure Customer Lifetime Value

Mobilkom Austria AG



Issue: Lacked knowledge of customer profitability; unable to manage and understand customer behaviour across multiple channels (Internet, Call Centers, Pre-paid & Branches)

Solution: Developed an end to end solution encompassing churn management, segmentation, campaign analysis, and customer lifetime value; implemented behavior analysis as well as credit risk, call center and roaming analysis

Benefit: End to end intelligence strategy and plans to expand portfolio.

Manage Across Multiple Channels

Bouygues Telecom


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Sprint´s Global Business Market GroupIssue: Inability to develop accurate and differentiated

customer segments for marketing campaigns in-house; reliant on costly 3rd party to produce data from multiple sources

Solution: Created a customer-centric view of data in-house and optimized customer relationship management through targeted database marketing, cross-selling/up-selling and bundling analysis

Benefit: Saved >$1m in outsourcing costs through performing analysis in-house; reduced churn rate from 6% to 2% (66%); increased customer satisfaction


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Issue: Need more efficient campaign process and better targeting of customers

Solution: Identify most profitable customers and optimize multi-channel marketing campaigns.

Benefit: Reduced campaign cycle time from 12 weeks to 2 weeks

Marketing Automation

GE Capital



Convert Strategy into Practice

TDC

Issue: Inability to define strategic focus areas and create customer satisfaction and loyalty

Solution: Implemented a solution to identify key performance indicators, align and focus strategic resources, operationalize the strategy chosen, make decisions and measure results across TDC business units

Benefit: Increased enterprise-wide efficiency and improved customer satisfaction levels


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Solutions Specific to Industry



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SAS® Intelligence Solutions

Contains Industry Specific! Logical Models! Data Models! Analytic Models! ETL Processes! Analytic Processes! Business Templates / KPIs / Scorecards! Applicable SAS Solution and enabling

Technology


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The Vision

Customer Retention

Marketing Automation

Credit Scoring

Banking Intelligence Architecture

PLUG - IN COMPONENTS

Strategic Performance Management


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SAS® Banking Intelligence Solutions

Addressing real industry ‘pains’


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SAS® Telecommunications Intelligence Solutions

Addressing real industry ‘pains’


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Delivering real business benefits

! Based on proven domain expertise ! Integrated across the business – no silos! Plan strategically, start focused, phased approach ! Integrates existing application investment! Extends easily to include new focus areas! Shortest time to implementation – technical / user! Reduced cycle time to gain maximum return! Maximum return on intelligence


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Fastest traditional approach

Typical Project Cycle

Ret

urn

Time

Intelligence improvement cycle

1 2 3 4


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The Intelligence Advantage


Project Cycle using SAS

Industry Solutions


Time

Ret

urn


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The Intelligence Advantage - lasts in time


Project Cycle using SAS

Industry Solutions


Intelligence Advantage

Time

Ret

urn


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Conclusions

! Focus on Strategy

! Focus on Metrics

! Focus on Learning


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Customer Intelligence: Experiences Using SAS · customer lifetime value; implemented behavior...

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