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Copyright © 2002, SAS Institute Inc. All rights reserved.

Introduction to Customer IntelligenceAlan GormleyCRM Solutions ManagerSAS Europe, Middle East & Africa

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Agenda! Why CRM?

! CRM Architecture

! Customer Intelligence Components

! Case Study

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What is CRM! An enterprise-wide strategy enabling

organizations to optimize customer satisfaction, revenue and profits while increasing shareholder value by becoming customer centric.

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Building a Strategy

Customer Value

CustomerNeed

SupplierNeed

Supplier Value

CustomerNeed

CustomerNeed

Business Need

Business Value

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Why CRM

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Shaping the Intelligence Layer

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Different people, different expectations! Loyal Customers

! Short Temper

! Supplier Agnostic

! Dislike all suppliers

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Different people, different channels! Shop

! Catalog

! Web

! E-Mail

! Call Center

Web

Shop Catalog

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Different people, different goalsPr

ofita

bilit

y

Likelihood to leave

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Variety is the spice of life! Different needs! Different channels! Different goals

! Different Offers! Different internal goals! Different constraints

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Banking Industry Drivers ! Fierce competition including globalization and

deregulation! Perceived commoditization of many banking

products and services! Rapid technology advancements

Customer expectationsChannels of distribution

! Mergers, consolidation and industry shakeout! Rise of consumerism! Government regulations

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Strategic Partner to the Banking Industry! Attrition Management ! Marketing Automation! Analytical CRM! Enterprise Performance Management! Credit Scoring ! Fraud Detection! e-intelligence! Call Center Management! Process improvement

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Telco Industry Drivers ! Fierce competition! Perceived commoditization of Telco services! Rapid technology advancements

!Customer expectations"Margins and prices

! Heavy debt burdens! Consolidation and industry shakeout! Continued convergence of voice and data! Continued deregulation

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Proven Success in the Telco Industry! Churn Management ! Marketing Campaign Management! Analytical CRM! Network Capacity Planning & Service Level Management! Enterprise Performance Management! Pricing & Tariff Simulation! Credit Scoring ! Fraud Detection! e-intelligence! Call Center Management

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Operational CRM

Sales CallCenterMarketing Customer

Service

Back Office

ERP ...SCM FinanceETL

DataWarehouse

HistoricAnalysis

PredictiveAnalysis

Campaign Management

Customer Interaction

E-Mail ExtranetVoice Web ContentManagement

Customer Intelligence

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Data Management

Key Features# Transparent access to operational

customer data

# Extendable to all sources of customer data

# ETL capability to clean, de-duplicate and enhance raw data.

# Single Customer Marketing Repository for storing, analysing, and running campaigns

# Metadata-driven,automated process to build and refresh customer repository

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Customer Analytics

Key Features# Most complete repository of modelling

techniques to predict buying propensity, campaign responses, credit risk and etc.

# Create both static and dynamic campaign models within a deployment process

# Combine business rules and analytic models to do segmentation and profiling based on current customer data

# Provide Online Analytical Processing (OLAP) capability to analyze customer data

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Campaign ManagementKey Features

# Manage both single and multi-stage campaigns

# Set up campaign definitions

# Identify target audience

# Provide quick count capability

# Prioritise communication

# Create communication cells

# Create export/interface definition

# Execute communication

# Update contact history

# Supports client, household selections

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Reporting and Response Management

Key Features# Tracks campaign financials including details

such as fixed vs. variable costs, and budgeted vs. allocated and actual costs.

# Reports on campaigns across multiple customer segments.

# Provides profiling, ROI, customer profitability, demand analysis, and forecasting reports.

# Allows users to create custom records and run customized reports in real time.

# Provides a complete application development environment for extending the solution

Logical Data ModelLogical Data Model

Detailed Data Store

AnalyticalData

Models

BSCKB

HOLAPData Models

Enterprise Guide / Enterprise Reporter

& WEB

Strategic PerformanceManagement

Enterprise Miner

CampaignManagement

ETL Process and Metadata ETL Process and Metadata

Exploitation

DimensionalPhysicalmodels

Online HTML WAdocumentation

Technical Architecture

Campaign ManagementData Model

Data Warehouse (relevant history)

Currentdata

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Sprint! Founded in 1899! 23 million customers (business & residential)

in more than 70 countries! Revenues topped $24 billion in 2000! 10th annual Enterprise Computing Award

recipient at SUGI 26

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Critical Business IssueProfitability declining from voice services and more in-depth customer knowledge was needed to expand internet and data service offerings

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Reasons! Customers were only buying one or two

products / services! Information on 23 million customers

was not centrally available to sales & marketing! A complete view of their customers

was not readily accessible! Predicting customer needs to cross-sell

and up-sell was difficult

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Results using SAS! Information requests from the field (sales)

are now completed in hours or minutes rather than weeks or days

! More timely information regarding! who their business customers are! what they need

! Increased opportunities to cross-sell & up-sell! The SAS powered CRM solution is a major

contributor to their reduction in churn rate from 6% to 2%

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