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SAP INNOVATION FORUM ISTANBUL SAP Predictive Analytics for Sales and Marketing Aykut Tellibayraktar DIGITAL ERA Connected Innovation

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  • SAP INNOVATION FORUM ISTANBUL

    SAP Predictive Analytics for Sales and Marketing

    Aykut Tellibayraktar

    DIGITAL ERA

    Connected Innovation

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 2Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Our Target

    Veri

    Madenciligi

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 3Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Sales & Marketing Use Cases

    Prospect new customers

    Grow existing customers

    Identify high value customers

    Retain potential churners

    Customer segmentation

    Social network analysis

    Geographical analysis

    Demand Forecast

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 4Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Prospect Identify new customers

    Target prospects with profiles similar to your existing customers.

    Reduce costs of acquisition: do not spend time with people you will never convince

    Increase conversion rates: target only the most promising prospects

    1 - Identify typical customer profiles 2 Target promising prospects

    Current customer profiles

    Predictive model Identify best targets

    SAP Predictive models can be integrated into marketing campaigns, CRM and other applications to

    automate the targeting process and provide predictive information to all business users.

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 5Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    GrowCross-sell and Up-sell existing customers

    Increase returns from cross and up-sell campaigns by identifying Next

    Best Action based on customer profile and previous purchases.

    Use predictive models to:

    - Evaluate appetency to purchase new products and services using

    customer profile (age, gender, profession, region, typical basket).

    - Identify common product associations and next best offer for each

    customer.

    - Select the best channel to contact customers and capture their interest.

    SAP predictive recommendation models can be integrated in real time with

    applications such as merchant web sites and mobile applications for sales

    forces.

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 6Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    SampleProspect & Grow

    49.000 total customers

    12.000 bought product X

    1. Identify the customer profiles who prefer my product.

    2. Who in my current customer pool can also be interested in this product X?

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 7Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Customer valueEarly detection of high-value customers

    Identify low or medium value customers that will become your premium customers in the

    future and make them loyal!

    Identify current key customers and analyze their past lifecycle

    Detect new customers following the same path

    1 2 3 4 5 6 7 8 9 10 11

    Different customer values across time

    Customer 1 Customer 2 Customer 3

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 8Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Retain customersIdentify potential churners

    Customer acquisition costs are much higher than customer retention costs.

    Digitalization and competition make customers more likely to churn.

    SAP Predictive Analytics helps companies to:

    Identify customers at risk of leaving

    Select offers and incentives most likely to

    persuade each customer to stay loyal

    Use social network analysis to predict viral churn

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 9Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Customer segmentationGrouping customers on their similarities

    Segmentation helps you to divide your customer base into groups

    of individuals that share similar characteristics

    Identify high value and/or high risk profiles

    Target specific groups of customers effectively and allocate marketing

    resources to best effect

    Invest resources to tailor products and services to match the needs of each

    target segment

    SAP Predictive Analytics analyzes your customer data and

    identifies the most relevant customer attributes. Customer

    segment are optimized through

    Goal-directed segmentation

    Automated attribute selection

    Graphical segment analysis

    Customer base

    Homogeneous groups

    Personalized strategy

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 10Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Social Network AnalysisAnalyze the shape of your social network

    SAP Predictive Analytics provides a unique spectrum

    of social network analysis capabilities so that you can

    understand social influence and behaviors across

    customer communities.

    Social data comes from various sources, such as:

    Social networks from the web

    Call detail records in the Telcos

    Financial networks to detect fraud

    You can then integrate social attributes into all of your

    predictive modeling to optimize campaigns across the

    customer lifecycle whether its member-get-member, cross-

    sell, up-sell or retention.

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 11Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    SampleProduct Recommendation

    8400 Transactions

    795 customers, 1263 Products, 17 Product Groups

    1. Which Products or Product Groups are sold together?

    2. Which products may I offer for a specific customer?

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 12Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Geo-locationLocation aware marketing

    We personalize customer interactions based on

    an individual's location.

    Location aware: translate latitude and longitude data

    into a new geographic variable called tiles or regions

    Co-Location: detects transactions or events occurring

    in the same location during the same period of time

    Path Identification: creates a sequence of geo-

    localized positions from time-based transactions to

    extract patterns of events

    Natively integrates geo-localized data and derived

    location-based attributes into predictive modeling

  • 2014 SAP SE or an SAP affiliate company. All rights reserved. 13Customer 2015 SAP SE or an SAP affiliate company. All rights reserved.

    Demand forecastOptimize stocks and resources

    Time-series models capture multiple effects to explain and forecast demand for goods

    and services:

    Trend

    Seasonal pattern

    External effects

    Weather / Temperature

    Price

    Advertisement

    Demand forecast helps companies managing their stocks and avoid shortages.

    It is also widely used to optimize human resources management in stores and call centers.