The Future of Customer Analytics (By Timo Elliott)

The Future of Customer Analytics
Timo Elliott, Jan 30, 2014
Public
Our customers
produce more than
65% of the coffee and

tea we drink each day
2014 SAP AG or an SAP affiliate company. All rights reserved.
Public
Our customers
produce more than
70% of the worlds

chocolate.
Public
Our customers
produce 64% of the
worlds ice cream.
Public
Our customers
produce more than
72% of the worlds

beer.
Public

timo.elliott@sap.com @timoelliott timoelliott.com
2014 SAP AG. All rights reserved.
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
14
80% of CEOs think they deliver a superior customer

experience -- but only 8% of customers agree.
Source: The New Yorker
The #1 Use of Big Data is Customer Analytics
Source: McKinsey
16
Which Business Decisions Benefit Most From Big Data?
Market opportunity and segmentation

Customer retention
Products and service mix
Source: McKinsey
17
What Is Big Data? The Google Summary
18
Big Data is at Peak of Inflated Expectations
but BI & Analytics still

#1 Technology priority
for 2014
Source: Gartner
19
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
23
Well put more

computers in our
laundry in a week
than weve used in
our lifetime so far
Gartner
25
26
Put Lego here the nice lego flash file!
27
28
29
Discover Hidden Trends
33
You Are Being Watched
34
Is Your TV Spying On You?
35
Spy Chips?
36
37
Edward James Snowden

Edward Joseph Snowden
38
39
Information becomes what you sell

HBR: Analytics 3.0
i
IT
ownership
Business
ownership
40
Predictive
41
Understanding Customers
42
Barclays
43
Track Who Likes Your Products (And Why, And When)
46
Social Analytics
47
Orange Poland (Telekomunikacja Polska)
Churn model accuracy

improved by 47% with
social
48
Engage Your Fans
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
50
What, When, and Where
51
Optimizing Sales
52
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
53
Add Customer Value in Real-Time
54
Coinstar
Inventory
Optimization
Real time Offers
Servicing
55
Optimize The Customer Experience With Playnomics
56
Perfect Your Pricing and Packaging
57
Personalized Offer Testing
58
Customer Experience
59
Reinvent Luxury Service
61
Be A Trusted Advisor
62
SAP Fashion Retail Brand Insight
63
Make People Happy

Experience Intelligence
Center
Event Interception
Business Transformation
65
Make People Happy
66
Create a Commerce Eco-System
Mapping stores on STM lines

and stations
STM Partners stores.

67
Create a Commerce Eco-System

A platform for real-time interactivity between consumers, STM and partners
Receive information, discounts &

Special offers
Partners
SAP Precision Retailing

CRM
(On-Demand, Multitenant, High Performance, Scalable)

BI
Merchants
Outings
Transports
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
68
A Personalized, Multi-Vendor Customer Experience

Select
Rate & Order
Deliver & Learn
Valid at this time
Eligible offers
In the store(s)
nearby
For my profile
(segments)
The rating is based on the

learning engine and on the
characteristics of the shopping
context, the consumer
preferences, and the frequency
of presentation.
Top x
What time is it ?
Where am I?
What is my personal profile?
What is my CRM profile?
What are my preferences ?

Where am I?
What is my personal profile?
What is my CRM profile?
69
Omni-Channel Retailing
FRONT OFFICE
TV
console
Web
POS
call
center
mobile
omni-channel logic
social
print
order orchestration
master data
omni-channel
touch points
platform
BACK OFFICE
ERP
Warehouse
PLM
CRM
Data Pools
Suppliers
71
Advanced personalization
72
Sharing Analytics With Your Customers
73
What Do These NBA Players Have in Common?
Xavier Henry
D.J. Mbenga
Tony Parker
74
Engage Your Fans
75
Sailing
77
78
79
80
81
Superbowl Predictions
82
Engage Your Citizens
83
Engage Your Students
In the past five years, taxpayers have

spent $9Bn on college students who
drop out before year two
84
Learn Then Act
Saving 1% in Student Retention

can save my Universitys bottom
line $1M a year
85
Make Yourself Invaluable
86
Data To Partners
88
Fleet Management Customers
89
Aggregate Insights
90
Conclusion
91
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.
92
Innovation And Design Thinking
93
Our portfolio combines the best of next-generation

technology to help you innovate, transform and grow
Mobile
Unwire your business to deliver secure, real-time, business-critical information anytime,
anywhere, to anyone, on any mobile device.
Cloud
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.
Applications
Analytics
Run your business smarter, faster,

and simpler, with an integrated suite
of applications powered by SAP
HANA delivering long-term
predictability and nondisruptive
innovation.
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.
Database & Technology

Simplify your IT infrastructure dramatically and drive high-value innovation by exploiting
across structured and unstructured data sources.
A real-time business platform, powered by SAP HANA
94
Thank you!
Timo Elliott, SAP
timo.elliott@sap.com
Twitter: @timoelliott
Blog: timoelliott.com
95
97
Product links
Products are linked because
they are bought by common
customers
The relationships can be

analysed using
community
detection
Public
99

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The Future of Customer Analytics

Timo Elliott, Jan 30, 2014

65% of the coffee and

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

70% of the worlds

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

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

72% of the worlds

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

2014 SAP AG. All rights reserved.

Customer Analytics Trends

2014 SAP AG. All rights reserved.

73% of people surveyed wouldnt care if the brands

Millennials trust strangers over family and friends. They lean

70% of buying experiences are based on how the customer

More than 70% of customers surveyed believe small businesses

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

Big Disruptions Ahead

2014 SAP AG. All rights reserved.

Source: Forrester Research

80% of CEOs think they deliver a superior customer

The #1 Use of Big Data is Customer Analytics

Which Business Decisions Benefit Most From Big Data?

Market opportunity and segmentation

Products and service mix

What Is Big Data? The Google Summary

2014 SAP AG. All rights reserved.

Big Data is at Peak of Inflated Expectations

but BI & Analytics still

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

Wearable devices have grown by 2x month over month

Photo: Intel Free Press

The Datification of Daily Life

2014 SAP AG. All rights reserved.

Well put more

2014 SAP AG. All rights reserved.

The Datification of Daily Life

2014 SAP AG. All rights reserved.

Put Lego here the nice lego flash file!

2014 SAP AG. All rights reserved.

The Datification of Daily Life

2014 SAP AG. All rights reserved.

The Datification of Daily Life

2014 SAP AG. All rights reserved.

Discover Hidden Trends

2014 SAP AG. All rights reserved.

You Are Being Watched

2014 SAP AG. All rights reserved.

Is Your TV Spying On You?

2014 SAP AG. All rights reserved.

2014 SAP AG. All rights reserved.

2014 SAP AG. All rights reserved.

Edward James Snowden

2014 SAP AG. All rights reserved.

2014 SAP AG. All rights reserved.

Information becomes what you sell

2014 SAP AG. All rights reserved.

2014 SAP AG. All rights reserved.

2014 SAP AG. All rights reserved.

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

2014 SAP AG. All rights reserved.

2014 SAP AG. All rights reserved.

Orange Poland (Telekomunikacja Polska)