Kontaktpunkt analyse

Nordic Head of IMM Bo Sannung,

SAS Institute

Email: bo.sannung@sas.com,

Mobil: +45 5138 7770

2

Message Overload On any given day, the

customer will be

exposed to nearly 3,000

media messages.

They will pay

attention to 52.

They will positively

remember 4.

The chance they will

remember your ad is

0.013%!

D. Mastervich, VP, Sales Strategy, U.S. Postal Service, VDP Conference Presentation

DRIVING VALUE FROM CUSTOMER RELATIONSHIPS

IS INCREASINGLY COMPLEX

Products

Channels &

Business

Functions

Offers,

Services &

Pricing

Checking

Savings

Loans Credit Cards Mortgages

Customers &

Prospects

Web E-mail Mail Print Branch Phone Mobile Social Risk Advisor ATM Collections TV Radio Finance

Insurance

Investments Lines

$

Service

Social media – amplifying number of

touchpoints

1 February 2013 4

5

Channel / Media Trustworthiness

Epsilon Targeting

Step 3: Multichannel Marketing

Source: Edelman et al. 2010

Traditional decision journey

1 February 2013 6

Source: Edelman et al 2010

New customer decision journey

1 February 2013 7

• Consider

– TOM brands: Touchpoints – Ads, store displays, WOM

• Evaluate

– Seeking input: Touchpoints – peers, reviewers, retailers, brands

• Buy

– Point of purchase: Touchpoints – placement, packaging, availability, pricing, sales interactions

• Enjoy, Advocate, Bond

– Deeper connection: Touchpoints – online, mobile, research, advocate, WOM

Key considerations

1 February 2013 8 2012 COPYRIGHT SAS INSTITUTE

70% budget

Source: Edelman et al 2010

Source: Vandermerwe 2000, and Dunn & Davis 2004

Managing the customer experience

1 February 2013 9

DURING

POST

PRE

Influence whether or not to

consider buying:

- Advertising

- WOM

- Direct mail

- Social media

Moving from consideration to

purchase:

- Direct sales

- Physical store

- Contact center

- Social media

Leverage after sale to improve brand experience:

- Installation

- Customer service

- Warranty

- Surveys

- Maintenance

- Upgrades

- Portfolio

ACCENTURE RESEARCH 2011

COMPANIES THAT INVEST IN ADVANCED

ANALYTICAL CAPABILITIES OUTPERFORM

THE S&P 500 ON AVERAGE BY 64%

65% OF HIGH-PERFORMING COMPANIES

HAVE SIGNIFICANT DECISION-SUPPORT

AND ANALYTICAL CAPABILITIES

77% OF HIGH-PERFORMING

COMPANIES HAVE ANALYTICAL

CAPABILITIES ABOVE AVERAGE

ONLY 40% OF MAJOR BUSINESS

DECISIONS ARE BASED ON DATA

AND FACTS

INADEQUATE INFORMATION ACCESS

REDUCES KNOWLEDGE WORKERS’

PRODUCTIVITY BY 54%

36% OF HIGH-PERFORMING

COMPANIES VALUE ANALYTICAL

INSIGHTS

Fra outbound til inbound

“The Emergence Of Customer Experience Management Solutions”

Time to Get it Right

Treat customers the way we want to be treated…

…and generate double-digit increases in response and revenue

Overview

Personalized “Next Best Product” offer

executed across…

nbp

Branch/Advisor

The NBO 4 main components

Customer Behavior Importance

Previous Contacts Restrictions

“The product was already

offered to this customer”

“The probability of the

customer to aquire the

product”

“The profitability

generated if the customer

aquire the product”

“The product can be sold

to the customer”

Maximering af kundeværdi

Potential

Risk

Customer

Value

Profitability

Data

Front Office

Back Office

Product Silos

System

Limitations

Maximise Customer Revenue, Reduce Cost to Serve, Enhance Margin

Customers

Profitabilitet

Lønsomhedsopgørelse

Omsætning: Forbrugs DB 100 Abonnement DB 100 = Samlet DB1 200 Direkte kapacitetsomkostninger: Salg 10 Marketing 20 Kampagne 30 = Samlet direkte kapacitetsomkostninger 60 = Samlet DB2 140 Indirekte kapacitetsomkostninger: Kundecenter 15 Billing / Produktskifte 25 Debitorer 35 = Samlet direkte kapacitetsomkostninger 75 = Samlet omkostninger 135 = Samlet DB2,5 65 Øvrige omkostninger 50 = EBIT 15

Lønsomhed på kunde

Faktisk kunde i august 2009

Potentiale

Kunde Kamp A Kamp B Kamp C

1 90 20 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 30 75

Kunde scoring - respons

Kunde Prod A Prod B Prod C

1 90 20 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 30 75

Kunde scoring - Produkt

Kunde Kanal A Kanal B Kanal C

1 90 20 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 30 75

Kunde scoring - kanal

Risiko

Kunde Churn Q1 Churn Q2 Churn Q3

1 90 20 90

2 80 70 75

3 60 75 65

4 55 80 75

5 75 60 50

6 75 65 60

7 75 90 65

8 65 60 60

9 80 30 75

Kunde scoring - churn

27

Copyright © 2011, SAS Institute Inc. All rights reserved.

Ch

urn

&

Re

co

nc

ilia

tio

n

Ma

xim

ize

Re

ve

nu

e

Applying Predictive Models to Marketing Strategy

Question Modeling Approach Treatment Strategy

Why Will Customer Churn?

Who is Savable?

When Will Customer

Churn?

Propensity to Churn

Survival Model (Time until

churn)

Propensity to Stay

Who Will Buy? What?

Which product will

Customer Buy Next?

Propensity to Buy

Product Basket

When Will Customer

Buy? Survival Model (Time until

Purchase)

Value Segment

Decile H M L

1

2

3

4

5

Pro

pensity

Score

Marketing Objective

28

Copyright © 2011, SAS Institute Inc. All rights reserved.

Step 1: develop a meaningful customer segmentation Segmentation Requirements

• Simple and intuitive

• Categorises appropriate share of the customer database

• Segments of significant sizes

• Sufficient differentiation

• Actionable

Satisfaction

Engagement

Value

Participation

Knowledge

Opportunity Segmentation

Research Data

• 2800 survey respondents

• Shopping behaviour

• Loyalty programme participation

• Satisfaction

Transactional Data

• Points accrual transactions

• Points redemption transactions

• Shopping behaviour

across 17 retail and

service brands

• Card usage vs

automatic points

collection

• Response to

promotions

29

Copyright © 2011, SAS Institute Inc. All rights reserved.

The Nectar Marketing Communications Segmentation

Nectar Indifferents Routine Grocery

Shoppers

Swipeless Savers Contented X-

Shoppers

Savvy Supermarket

Shoppers

Bonus Seekers

Engaged Enthusiasts

30

Copyright © 2011, SAS Institute Inc. All rights reserved.

Average Customer Profitability and Ability to Promote by Segment

Profitability Index

Pro

mo

tab

ilit

y I

nd

ex

Step 3: Overlaying financial data allows for improving the allocation of customer marketing investment

Low High

High

Low

Low profitability, little

opportunity to improve

via incentives

Low profitability, some

opportunity to improve

via incentives

Highly profitable

segments