Download Real World Case Study

J. Graeme Noseworthy
Strategic Messaging Director
IBM
@graemeknows
What are the leading trends in
data-driven marketing and loyalty for
today’s digital economy?
@graemeknows
CMOs feel underprepared for the deluge of data and the
growth in social media; the pace of change is too fast
Preparedness for the data explosion
71%
82%
29%
18%
2011
68%
66%
32%
34%
2011
2013
Prepared
@graemeknows
Preparedness for social media
2013
Underprepared
Source: 2014 IBM IBV Global C-Suite Study
CMOs expect to accelerate the introduction of digital
marketing technologies over the next three to five years
Intended use of digital technologies (3 to 5 years)
Advanced (predictive) analytics
94%
66%
Mobile applications
Customer relationship management
81%
Collaboration tools
73%
Search engine optimization
62%
Reputation management
63%
89%
87%
68%
Content management
81%
80%
79%
47%
46%
Email marketing
2013
@graemeknows
94%
80%
2011
Source: 2014 IBM IBV Global C-Suite Study
CMOs identified three critical success factors for
dealing with the emerging digital economy
Use
advanced
analytics for
deep customer
insight
Define a
rewarding
customer
experience
Effectively
execute on
the customer
promise
@graemeknows
Source: 2014 IBM IBV Global C-Suite Study
How does Big Data & Analytics enable
CMOs to generate real customer loyalty to
drive marketing performance?
@graemeknows
Key Shifts in Marketing
are driving the urgency to act
1. Ongoing emergence of Big Data
2. Shift of power to the consumer
3. Increasing pressure to do more with less
4. Recognition that loyalty drives performance
@graemeknows
65%
of business are not using big
data for business advantage
84%
of consumers rely on social
networks for purchase decisions
32%
higher return on invested capital
for organizations using advanced analytics
*2013 IBM IBV Big Data and Analytics Study & ODM Group Study
Addressing Key Imperatives
that are aligned to business results
1. Optimize operations and reduce fraud
From Acquisition
2. Maximize Insight and IT Economics
3. Acquire, Grow & Retain Customers
4. Transform Business Practice
5. Create New Business Models
@graemeknows
To Personalization
From Retention
To Loyalty
How does Big Data & Analytics help
marketers to gain one single, reliable
vision of the customer?
@graemeknows
Paradigm shifts enabled by big data
Leverage more of the data being captured
TRADITIONAL APPROACH
All available
information
Analyze small subsets
of Information
@graemeknows
BIG DATA APPROACH
Analyzed
information
All available
information
analyzed
Analyze
all information
Paradigm shifts enabled by big data
Reduce effort required to leverage data
TRADITIONAL APPROACH
Small
amount of
carefully
organized
information
Carefully cleanse information
before any analysis
@graemeknows
BIG DATA APPROACH
Large
amount of
messy
information
Analyze information as is,
cleanse as needed
Paradigm shifts enabled by big data
Data leads the way—and sometimes correlations are good enough
TRADITIONAL APPROACH
Hypothesis
Question
Data
Exploration
Answer
Data
Insight
Correlation
Start with hypothesis and
test against selected data
@graemeknows
BIG DATA APPROACH
Explore all data and
identify correlations
Paradigm shifts enabled by big data
Leverage data as it is captured
TRADITIONAL APPROACH
BIG DATA APPROACH
Data
Analysis
Data
Repository
Analysis
Insight
Insight
Analyze data after it’s been processed
and landed in a warehouse or mart
@graemeknows
Analyze data in motion as it’s
generated, in real-time
OK, so now what?
@graemeknows
To outperform
as data-driven marketers
1. Use analytics to improve core competitiveness
but understand that it’s a consumer requirement
Capture and consolidate
Before
disparate data about consumers across
touch points for 1 version of the truth
2. Make data-driven loyalty a real differentiator
3. Be more right, more often… and let your
customers know it.
4. Collaborate across the enterprise to increase
adoption of your loyalty programs.
5. Send the value downstream where your
customers are “wading” for you
@graemeknows
During
Uncover hidden patterns
and associations within consumer data
to predict what they are likely to do next
Review, measure and apply the
After
optimal offer, time and channel that is best
for each individual prospect and customer
Manage Risk
from agency to audience and back
1. Guard against poor-decision making
2. Protect against security and privacy risks
Access the right data
Apply governance policies
3. Get the risk-opportunity equation right
4. Keep your audience informed at all times
Comply with regulations
Use T&Cs anyone can grasp
@graemeknows
Create Agility
by applying analytics across the board
1. Adopt a new approach to the onslaught of data
Systems of Record
2. Unify to Utilize – knocking down silos to add data
and add value to loyalty programs
CRM / Transactions / ERP / Products /
Content / Documents / Offline / Finance
3. Build a culture that infuses analytics everywhere
4. Create Data Attraction Strategies that refine
insights into relevance and then drive that
relevance back to the consumer
5. Personalize each step. Consistency is
authenticity. Loyalty is more than a name or a list
of recent transactions.
@graemeknows
meets
Systems of Engagement
Ads / Clickstreams / Social / Mobile /
DMP / Experiential / Call Centers / SaaS
How do leading marketers transform their
big data & analytics environment to
outperform in their industry?
@graemeknows
Creating an Ecosystem of Insights & Loyalty
which in turn generates measureable relevance and revenue
Data sources
Real-time analytics
Actionable insight
Linear &
Non-Linear
Cognitive
Image and video
Enterprise
content
Transaction and
application data
Information
ingestion and
operational
information
+
+
Social data
Third-party data
Exploration,
landing and
archive
Enterprise
Enterprise
warehouse
warehouse
Decision
management
Enhanced
applications
Customer
experience
New business
models
Financial
performance
Data mart
Data mart
Predictive analytics
and modeling
Analytic
appliances
Analytic
appliances
Reporting, analysis,
content analytics
Risk
Operations
and fraud
IT economics
Information governance
SYSTEMS—SECURITY—STORAGE
@graemeknows
Discovery and
exploration
Sending the Value of Insights Downstream
Industry Leaders understand loyalty requires horsepower
1. Coupons.com – gain accurate insight into marketing
campaigns and consumer preferences
2. Catalina Marketing – make the most of every single
transaction at the client’s POS
3. Coca-Cola – build brand loyalty while enabling the
creation of campaigns tailored down to the persona
4. BestBuy – create hyper-personalized marketing
campaigns and e-coupons, boosting customer loyalty
@graemeknows
Real World Case Study: Coupons.com
unprecedented views into marketing performance, sales and revenue
Situation:
The sheer volume of consumers, partners, sales channels,
coupons and products it offers leads Coupons.com to generate
and capture massive amounts of data. Data types include
consumer profiles, transactions, detailed coupon information
and account information for corporate customers.
Solution:
Integrate structured and unstructured data from multiple internal
and external sources, and run complex queries. Provides
corporate and account management analysis dashboards and
ad hoc query capabilities used by the account management,
corporate, client marketing and partner marketing teams.
Benefits:
Generates analytic reports and queries up to 95 % faster, in
minutes instead of hours. Helps improve account management
and campaign measurement and supports intelligence-based
decision making for personalized campaigns.
@graemeknows
Real World Case Study: Catalina Marketing
making the most of every single transaction at the client’s POS
Situation:
Catalina collects, stores and analyzes data to determine the
buying preferences of millions of households. They sell this
information to customers, such as grocery stores and
pharmacies, so they can better understand and serve their
consumers right at the POS.
Solution:
Catalina implemented big data and analytics hardware and
software to store large volumes of data, manage data growth
and perform data analysis on complex and large data sets at
extremely high speeds.
Benefits:
Catalina saw dramatic reductions in processing times enabling
them to add value in real time to the customer experience at the
point of sale… and beyond.
@graemeknows
Real World Case Study: Coca-Cola, Inc.
bringing loyalty programs from a few features to a full experience
Situation:
Coca-Cola’s goals are to grow brand advocacy and increase
consumer engagement across its many brands, with a focus on
expanding its member base and turning more of its My Coke
Rewards members into engaged members.
Solution:
Build a sophisticated consumer database solution that tracks,
monitors, manages and analyzes virtually all demographic,
behavioral and interaction data of its 25 million loyalty program
members. Provide insight into how consumers feel toward the
company’s brands and how best to build and inspire brand
devotion and social advocacy.
Benefits:
Drives goal of doubling loyalty program membership from 25M
to 50M members. Provides insight into how they interact and
feel about the brand. Helps determine which strategies are
necessary to build brand loyalty and create highly relevant
campaigns tailored down to the persona level.
@graemeknows
Real World Case Study: Best Buy Stores
making loyalty interconnected, instrumented and intelligent
Situation:
Marketers depended on an outdated system to run marketing
campaigns. Getting access to the data was difficult at best.
They needed to extract customer data subsets to develop
segmentation and other predictive models, and then use the
resulting models to score its overall customer database before
running campaigns.
Solution:
Create a multichannel view of each customer’s activity,
including orders, products, website visits, clickstream,
campaign response, social media activity and other metrics.
Deliver customer behavior segmentation and analytics
capabilities, as well as best practice reporting.
Benefits:
Increases data processing speeds by 450x, accelerating data
analysis and segmentation. Accelerates report generation
speeds by 90%+, from weeks to minutes, helping marketers
develop and execute campaigns faster.
@graemeknows
THINK BIG
Start Small
Imagine it.
Realize it.
Trust it.
Build a culture
that infuses
analytics
everywhere
Invest ahead of
scale in a big
data & analytics
platform
Be proactive
about privacy,
security and
governance