The Analytics Highway to Customer Loyalty - Alteryx Webinar

1© 2013 Alteryx, Inc. Confidential.

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The Analytics Highway to Customer Loyalty


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Today’s Speakers

Bob LaurentDirector of Industry Marketing

Alteryx

Abhishek BansalAssociate Director of Customer Analytics

Absolutdata


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• Background

• Customer Analytics Survey• Data Sources• Benefits• Challenges• Investment Areas

• Focus on Investment Areas• Technology: Alteryx• People: Data Artisan• External Resources: AbsolutData

• Q&A

Today’s Agenda


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There are lots of sources of customer data


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Unfortunately…

Many companiescannot get aclear view of

their customers


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We went in search of the facts…

In Spring 2013, Alteryx and AbsolutData surveyed industry thought leaders to gather insight into how organizations use Customer Analytics, including adoption levels, goals, usage, and relative maturity.Our goal: Identify the benefits and challenges organizationsface when turning Big Data into customer insight


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Data was gathered from a diverse set of professionals across a range of industries

25%

42%

33%

Consumers Other businesses Both

Products/Services Offered

Services

Retail, wholesale

Banking, Finance, Insurance

Telecom

CPG

Hospitality

Manufacturing

Nonprofit

Government

Construction

Transportation

Other

24%

16%

15%

6%

4%

3%

3%

3%

1%

1%

1%

24%

Industry Number of Employees

28%

21%11%

15%

25%

1-100 101-500 501-1,000

1,001-5,000 5,000+


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Data was gathered from a diverse set of professionals across a range of industries

Department

41%

32%

7%

6%4%

9%

Research and Analytics Marketing IT Sales

Customer Care/Retention Other

37%

23%

19%

12%

8%

I develop customer analytics solutions for my company

I do not develop applications, but I use their output

I give directions to a team on how to use customer analytics

I am not involved in customer analytics

Other

Level of Involvement


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Companies collect many differenttypes of customer data

Data captured from every customer interaction has the potential to provide deeper insight into their behavior, attitudes, and opinions—insight that can be leveraged to improve customer relationships and gain a competitive edge.

Traditional data sources still dominate, but several new areasof insight are emerging.

Customer demograph-ics

Primary/research data

POS/transaction data

Customer interaction data

Social media

Loyalty card data

Complaint data

Recorded voice calls

Others

69%

69%

61%

49%

41%

31%

30%

17%

6%


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Vast majority of companies useCustomer Analytics today

82%18%

Yes No

Organizations are listening to what customers say through their data. They use this insight to implement customer-driven marketing strategies that improve revenue and customer loyalty.


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Analytics provides input tostrategic operations

Customer Focus

ChannelFocus

Customer acquisition/retention

Enhanced customer satisfaction

Increased loyalty

Improve product/service design

Optimize marketing/channel

Design/improve channel strategy

69%

63%

46%

62%

60%

49%

Customer Analytics is used primarily for customer-focused Sales & Marketing activities.

But, many also use this insight to make product/service portfolio decisions, and determine the optimal distribution channels.

ProductFocus


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But, Three Major Challenges Emerged:

CHALLENGE #1:Getting the Right Data

CHALLENGE #2:Lack of Access & Skills

CHALLENGE #3:ROI Assessment


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CHALLENGE #1: Getting the Right Data

• Different departments use different data sources in an attempt to answer similar questions

• Time is wasted with tools that cannot processBig Data efficiently

• Unstructured, but valuable data such as social media and call center logs cannot be used

Massive volumes of disparate data types and sources must become easier to access, work with, and blend

Accessing data managedby other departments

Integrating massiveamounts of data

Integrating disparatedata types

Converting data into actionable insight

Collecting and storing relevant data

43%

39%

38%

37%

23%


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Case Study


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Consummate experience in blending diverse data sources

Attitudinal data

Preferences

Attributes

Bureau Data

Prospects lists

Annual Reports

Public data

Library

Core/Non Core

Growth Potential

Pricing

Location

Product range

GDP Growth

Unemployment

Population growth

Socio Eco Segment

Income

Lifestyle segment

Purchasing Attitude

Psychographics

Risk & Income Profile

Payment history

Collections history

Contact history

Contact details

Campaign history

Campaign response

Loyalty

Point of Sales

Channel Usage

Product Usage

Consumer Research

Consumer Research

Third Party DataThird Party Data

AttitudesAttitudes

TransactionsTransactions

DemographicsDemographics

Customer ResponseCustomer Response

Risk & Collections

Risk & Collections

Customer Contact

Customer Contact

Secondary Research

Secondary Research

Macro EconomicMacro Economic

CompetitorCompetitor

VendorVendor

Opinions

Social Media

Behaviour

Revenue

Cost to acquire/servceCustomer

ProfitabilityCustomer

Profitability

FacebookFacebook WebsiteWebsite

TwitterTwitterIntranetIntranet

AbsolutData created a 360 degree single customer view for its client, combining various data sources• Designed the data warehouse• Combined structured and unstructured data sources• Used data warehouse for advanced marketing & customer analytics


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CHALLENGE #2: Lack of Access & Skills

12%

38%42%

8%

Industry leading, with a mastery of advanced ana-lytics Advanced, using predictive and spatial analytics Basic, for modification of existing analytic work-flows Limited, for generating reports only

• Limited access to IT staff/resources drivingline-of-business users to do their own analytics

• Access to data and overly complex toolsremains a barrier to greater analytics usage

• There is limited ability for new analyses, especially in B2B companies where basic skills dominate

The analytics required to answer complex questions must be put into the hands of users with the industry knowledge and skills


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Diverse skill sets deployed for a $8B Hospitality major

Standalone projects:Data explorationCampaign ExecutionAd-hoc analysis

Diversified into work streams: Campaign

ManagementStatistical ModelsSegmentation

Moving towards: Significantly

augmenting analytical capabilities to solve more complex business problems

Opportunity Identification - driving business strategy through analytics. E.g. contact optimization

Process enhancements, Analytics enrichment

Thought partnershipStrategic leadership

2012 H1 2012 H2 2013

Volume

Analytics Technologist

Analytics TechnologistAnalytics Scientist

Analytics TechnologistAnalytics ScientistBusiness Consultant

5 Resources 10-15 resources 30+ team

Skills Deployed

Value


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CHALLENGE #3: ROI Assessment

• Organizations struggle with defining & calculating ROI for analytics

• Less than half can identify positive ROI

• Implementation of marketing best practices canbe accelerated using specialized support

ROI remains elusive so a customized approach is required based on the analytics maturity of the organization & its current analytics capabilities

9%

10%

43%

38%

Return is less than investment Return is equal to investment Return is more than investment Don't know or can't measure


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Case Study


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Helped Asia’s leading Satellite TV services provider to achieve quantifiable ROI from analytics deployment

IT Infrastructure

Data

Attrition Models Segmentation Payment Models

Lifetime Value Pricing ModelsAn

aly

tics

Valu

e

1.5% increase in recharges

30% increase in Revenue per user

Doubling of ala-carte sales

10% increase in response rates

25% cost reduction in campaigns


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Summary of Challenges & Recommendations

CHALLENGE #1: Getting the Right DataMassive volumes of disparate data types and sourcesmust become easier to access, work with, and blend

CHALLENGE #2: Lack of Access & SkillsThe analytics required to answer complex questions must be put into the hands of users with the industry knowledge and skills

CHALLENGE #3: ROI AssessmentROI remains elusive so a customized approach is required based on the analytics maturity of the organization & its current analytics capabilities


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Analytics Investment Continues

Despite these challenges, almost all companies plan to increase their investment in analytics technology, people and external resources.

ExternalResources

People

Technology

71%

75%

95%

22%

12%

4%

7%

13%

1%

Positive No change Negative

Average Increase: 21%



Average Decrease: 10%




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Analytics Investment: Technology

Alteryx is:

• Both our company and our product

• A Windows-based software platform

• Installed on a desktop or server

• Trusted by 250+ customers and 200,000+ users, including the Fortune 500

• Leading the Consumerization of Big Data Analytics


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DESIGNER DESKTOP

Step 1: Integrate all Relevant Data

InputIntegrate

(Sort, Join, Aggregate)

Cleanse &Geocode

Enrichwith ThirdParty Data

EnterpriseData

DeviceData

SocialData

CloudData


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Step 2: Develop Analytic Workflows

SpatialAnalytics

PredictiveAnalytics

BehavioralAnalytics

DESIGNER DESKTOP

LOTS of different tools for data blending, enrichment, and analytics :


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Step 3: Produce and Share Insight

DESIGNER DESKTOP

OutputData

Produce Reports,Charts, Maps & Emails

Publish toCloud


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Alteryx Analytics GalleryCreate & Share Analytic Apps in the Cloud


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Alteryx Analytics GalleryCreate & Share Analytic Apps in the Cloud

Turn Disparate Data

Into Actionable Insight


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Analytics Investment: People

Data Artisan

Capabilities of Data Scientistthat Drive Largest Value Today

Marketing orCustomer Analyst


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Analytics Investment: External Resources

Founded in 2001

Pioneer in delivering Analytics and Marketing Research by leveraging a global delivery model

Over 400+ employees with HQ in the San Francisco Bay Area & delivery center in New Delhi, India

Senior management from McKinsey, Kraft, Pfizer, Mitsubishi, Nielsen, GE, HSBC and Accenture

Raised $20M from Fidelity Growth Partners India in August 2012

Recently co-authored a widely circulated report on Marketing Analytics Opportunity with Nasscom (Premier organization representing IT and Outsourcing Industry in India)


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Comprehensive & Broad Service Offerings

Analytics

Data Visualizatio

n & Reporting

Market Research

Business Research Big Data


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Delivering Value Across SectorsAbsolutData serves many Fortune 500 clients around the globe, spanning many

industry verticals. Consulting

Top International Management Consulting Firm Leading Global Management Consulting Firm with offices in 42 countries

CPG / Food & beverages

An American multinational confectionery, food and beverage conglomerate – second largest in the world

World's second-largest brewing company

Retail Largest specialty apparel retailer in the U.S. World's Largest Office Supply Retail Store Chain

Hospitality International Chain of Full-Service Hotels and Resorts

Telecom, Technology

&Online

Leading Multinational Telecommunications Corporation World's Largest Mobile Telecommunications Company

Banking and Financial Services

Institutions

Leading American Multinational Diversified Financial Services Company Regional Full Service Commercial Bank in the US

Pharmaceutical

American-based global, diversified (multi-division) pharmaceuticals and health care products

Media & Entertainment

Largest Media and Entertainment Conglomerate in the World Leading American Cable Television Network Company

Automobile Top Japanese Multinational Automobile Corporation Largest Automobile Manufacturer in the US


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A Few of Our Esteemed Clients….

http://www.perfettivanmelle.in/index.html






















http://bovitzinc.com/

http://www.hallandpartners.com/























































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Summary: A New Analytics Paradigm has Emerged

OVERCOMES DATA CHALLENGES:Blends massive volumes of disparate data types and sources in a straightforward, workflow format without complex coding

OVERCOMES USER CHALLENGES:Robust predictive and spatial tools allow Data Artisansin the line-of-business to perform their own analytics

OVERCOMES FINANCIAL CHALLENGES:External expertise can help organizations carefully plot its analytics journey and accelerate its ROI to derive the maximum benefit


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Thank Youfor Attending!

You will receive a free copyof our new white paper:

1. Details about the survey results

2. Insight about how YOU can put data to work to drive critical improvements in sales, customer retention, and brand loyalty


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Q & A


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• Consumer Analytics• Predictive Analytics• Strategic Analytics• Big Data Analytics• Big Data Analysis• Humanizing Big Data• Strategic Analytics• Data Scientist• Data Artisan• Data Analyst• Big Data Gap• Unstructured data• Analytics Platform• Unstructured Data

• Alteryx• Bob Laurent• Absolut Data• Alteryx Analytics Gallery• Customer Loyalty

Key Terms

The Analytics Highway to Customer Loyalty - Alteryx Webinar

Business

customer insight

sources of customer

customer loyalty

customer relationships

customer analytics solutions

big data

sales customer careretention

alteryx people