The Future of Customer Analytics (by Timo Elliott)

The Future of Customer Analytics Timo Elliott, Jan 30, 2014 Public

2014 SAP AG or an SAP affiliate company. All rights reserved. 3 Public

Our customers

produce more than

65% of the coffee and tea we drink each day


Our customers

produce more than

70% of the worlds chocolate.


Our customers

produce 64% of the worlds ice cream.


Our customers

produce more than

72% of the worlds beer.

2014 SAP AG. All rights reserved. 7

[email protected] @timoelliott timoelliott.com


Customer Analytics Trends

73% of people surveyed wouldnt care if the brands

they use disappeared from their life.

Source: Co.Exist

Millennials trust strangers over family and friends. They lean

on User-Generated Experiences for purchase decisions.

Source: Brian Solis Future of Business, 2013

70% of buying experiences are based on how the customer

feels he or she is being treated.

Source: McKinsey

More than 70% of customers surveyed believe small businesses

understand their customer better than large companies, know

their business/product better than large companies, provide a

more personal customer service experience than large

companies and are more concerned about my needs than

larger companies.

Source: : American Express Global Customer Service Barometer, 2012

On average, loyal customers are worth up to 10 times as

much as their first purchase.

Source: White House Office of Consumer Affairs


Big Disruptions Ahead

Source: Forrester Research

80% of CEOs think they deliver a superior customer

experience

Source: The New Yorker

-- but only 8% of customers agree.


The #1 Use of Big Data is Customer Analytics

Source: McKinsey


Which Business Decisions Benefit Most From Big Data?

Source: McKinsey

Market opportunity and segmentation

Customer retention

Products and service mix


What Is Big Data? The Google Summary


Big Data is at Peak of Inflated Expectations

but BI & Analytics still #1 Technology priority

for 2014

Source: Gartner

By 2017, there will be close to $11 Billion in revenue from

35-million homes using home automation platforms

across the globe.

Source: GIGAom, 2013

Wearable devices have grown by 2x month over month

since October 2012.

Source: Mary Meekers Internet Trends, 2013

Photo: Intel Free Press


The Datification of Daily Life


Well put more computers in our

laundry in a week

than weve used in our lifetime so far

Gartner


Put Lego here the nice lego flash file!


Discover Hidden Trends


You Are Being Watched


Is Your TV Spying On You?


Spy Chips?


Edward James Snowden

Edward Joseph Snowden


Information becomes what you sell

i

i i

Business

ownership

Business

ownership

IT

ownership

IT

ownership

HBR: Analytics 3.0


Predictive


Understanding Customers


Barclays


Track Who Likes Your Products (And Why, And When)


Social Analytics


Orange Poland (Telekomunikacja Polska)

Churn model accuracy

improved by 47% with

social


Data-driven decision making played a huge role in creating a

second term for the 44th

President. In politics, the era of big

data has arrived. - Time Magazine

Engage Your Fans


What, When, and Where


Optimizing Sales


Deliver The Right Offer To the Right Customer

At The Right Time

Modeling time from 3 months to 3 days

Up to 4x increase in campaign response rates

From product to customer marketing


Add Customer Value in Real-Time


Coinstar

Inventory

Optimization

Real time Offers

Servicing


Optimize The Customer Experience With Playnomics


Perfect Your Pricing and Packaging


Personalized Offer Testing


Customer Experience


Reinvent Luxury Service


Be A Trusted Advisor


SAP Fashion Retail Brand Insight


Experience Intelligence

Center

Experience Intelligence

Center

Event Interception

Business Transformation

Make People Happy


Make People Happy


Mapping stores on STM lines

and stations

STM Partners stores.

Create a Commerce Eco-System


Interact with consumer in the field Run mobile marketing campaigns based

on consumer profile and location

Interact with consumer in real-time anywhere, anytime.

Design & run mobile marketing campaigns based on consumer profile and location

Analyze consumer behavior in the field

Create a Commerce Eco-System A platform for real-time interactivity between consumers, STM and partners

SAP Precision Retailing (On-Demand, Multitenant, High Performance, Scalable)

Receive information, discounts & Special offers

BI

CRM

Merchants

Outings

Transports

Partners


A Personalized, Multi-Vendor Customer Experience

Valid at this time

For my profile (segments)

In the store(s) nearby

Eligible offers

Top x

What time is it ?

Where am I?

What is my personal profile?

What is my CRM profile?

Select Rate & Order Deliver & Learn

What are my preferences ?

Where am I?

What is my personal profile?

What is my CRM profile?

The rating is based on the

learning engine and on the

characteristics of the shopping

context, the consumer

preferences, and the frequency

of presentation.


Omni-Channel Retailing

ERP Warehouse PLM CRM Data Pools Suppliers

BACK OFFICE

master data

platform

omni-channel logic order orchestration

omni-channel

touch points

FRONT OFFICE

TV console POS mobile call

center print social Web


Advanced personalization


Sharing Analytics With Your Customers


What Do These NBA Players Have in Common?

D.J. Mbenga

Tony Parker

Xavier Henry


Engage Your Fans


Sailing


Superbowl Predictions


Engage Your Citizens


Engage Your Students

In the past five years, taxpayers have spent $9Bn on college students who

drop out before year two


Learn Then Act Saving 1% in Student Retention can save my Universitys bottom line $1M a year


Make Yourself Invaluable


Data To Partners


Fleet Management Customers


Aggregate Insights


Conclusion


Technology is Important But Its Not About Technology

The stone age was marked by man's clever

use of crude tools; the

information age, to

date, has been marked

by man's crude use of

clever tools.


Innovation And Design Thinking


Unwire your business to deliver secure, real-time, business-critical information anytime, anywhere, to anyone, on any mobile device.

Run your business smarter, faster,

and simpler, with an integrated suite

of applications powered by SAP

HANA delivering long-term predictability and nondisruptive

innovation.

Applications

Explore and exploit data, find

answers in real time, and make

confident decisions. Harness

visually compelling, easy-to-use

tools on the devices of your

choice.

Analytics

Mobile

Simplify your IT infrastructure dramatically and drive high-value innovation by exploiting

across structured and unstructured data sources.

Database & Technology

A real-time business platform, powered by SAP HANA

Our portfolio combines the best of next-generation

technology to help you innovate, transform and grow

Capture the power of the cloud while fully integrating with on-premise investments. Empower your employees, engage customers, and collaborate with partners across business networks.

Cloud


Thank you!

Timo Elliott, SAP

[email protected]

Twitter: @timoelliott

Blog: timoelliott.com


Product links

Products are linked because

they are bought by common

customers

The relationships can be

analysed using

community

detection

The Future of Customer Analytics (by Timo Elliott)

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