Customer Intelligence: Experiences Using SAS Donna Byrne SAS International

! Customer Intelligence ! Operational Vs. Analytical CRM ! CRM Methodology ! The Learning Organisation

! Customer Experiences ! Key Business Issues ! Telecom and Financial Services

Customer Touch Points Support Sales

Front-office systems

Business Intelligence

Call Centre Analytical Campaign Intelligence Management Front Office System Query & Reporting Legacy Systems

ERP Systems Data Warehouse

eBusiness Systems Recommendation/ Decision Engine

CRM Transaction Processing CRM Business Intelligence System

Customer Touch Points Support Sales

Front-office systems

Business Intelligence

Call Centre Analytical Campaign Intelligence Management Front Office System Query & Reporting Legacy Systems

ERP Systems Data Warehouse

eBusiness Systems Recommendation/ Decision Engine

CRM Transaction Processing CRM Business Intelligence System

Aligning investment and Right people, right channel, right resources to market time, right offer to build long term opportunities and mutually beneficial relationships requirements

Place the customer at the centre of the decision making process

Monitoring success and reporting Doing things right, deploying back to the business to create an resource to match customer agile learning enterprise demand and value

Time

! Customer Retention ! Customer Life Time Value ! Multiple Channels ! Credit Scoring ! Segmentation ! Cross Sell and Up-Sell ! Marketing Automation ! Strategic Performance Management

Issue: Threatened with losing customers to a low-priced new entrant, especially in the 15 – 25 yr old target segment Solution: Implemented a churn knowledge solution to predict potential churners and target specific segments with appropriate product bundling Benefit: Now plans new tariffs and campaigns that are more appropriate to customer needs. Turkcell is also using customer intelligence to improve their collections process in order to minimize both costs and risk.

Issue: Develop CRM strategies to reduce increasing attrition rates and understand customer behaviour for up sell/cross sell

Solution: Implemented CRM solution with key objectives in cross and up selling, credit risk management, customer retention and service.

Benefit: Response rate to marketing Campaigns increased to 30% from 3% Cross-selling ratio tripled

Issue: Decreasing customer retention rates Solution: Developed statistical models to predict churn- risk customers and drive tailored preventative marketing actions to individual customers; combined data from multiple sources to create actionable customer intelligence Benefit: Improved retention rates

Copyright © 2001, SAS Institute Inc. All rights reserved. Copyright © 2002 , SAS Institute Inc. All rights reserved. Manage Across Multiple Channels Bouygues Telecom Issue: Lacked knowledge of customer profitability; unable to manage and understand customer behaviour across multiple channels (Internet, Call Centers, Pre-paid & Branches)

Solution: Developed an end to end solution encompassing churn management, segmentation, campaign analysis, and customer lifetime value; implemented behavior analysis as well as credit risk, call center and roaming analysis Benefit: End to end intelligence strategy and plans to expand portfolio.

Issue: Inability to develop accurate and differentiated customer segments for marketing campaigns in- house; reliant on costly 3rd party to produce data from multiple sources

Solution: Created a customer-centric view of data in-house and optimized customer relationship management through targeted database marketing, cross- selling/up-selling and bundling analysis

Benefit: Saved >$1m in outsourcing costs through performing analysis in-house; reduced churn rate from 6% to 2% (66%); increased customer satisfaction

Issue: Need more efficient campaign process and better targeting of customers

Solution: Identify most profitable customers and optimize multi-channel marketing campaigns. Benefit: Reduced campaign cycle time from 12 weeks to 2 weeks

Issue: Inability to define strategic focus areas and create customer satisfaction and loyalty Solution: Implemented a solution to identify key performance indicators, align and focus strategic resources, operationalize the strategy chosen, make decisions and measure results across TDC business units Benefit: Increased enterprise-wide efficiency and improved customer satisfaction levels

! Logical Models ! Data Models ! Analytic Models ! ETL Processes ! Analytic Processes ! Business Templates / KPIs / Scorecards ! Applicable SAS Solution and enabling Technology

PLUG - IN COMPONENTS

Credit Scoring Strategic Performance Management Customer Marketing Retention Automation

Banking Intelligence Architecture

! Based on proven domain expertise ! Integrated across the business – no silos ! Plan strategically, start focused, phased approach ! Integrates existing application investment ! Extends easily to include new focus areas ! Shortest time to implementation – technical / user ! Reduced cycle time to gain maximum return ! Maximum return on intelligence

1 2 3 4 Return Return

Typical Project Cycle Intelligence improvement cycle

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Project Cycle using SAS Industry

Return Return Solutions Intelligence improvement cycle

Typical Project Cycle

Time

Project Cycle using SAS Industry

Return Return Solutions Intelligence improvement cycle

Typical Intelligence Advantage Project Cycle

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! Focus on Strategy

! Focus on Metrics

! Focus on Learning