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USING ANALYTICS TO

MANAGE SALES AND BUILD

CUSTOMER SATISFACTION

ANTTI SYVÄNIEMI

CHIEF EXECUTIVE OFFICER

HOUSTON ANALYTICS LTD

Antti Syväniemi 20.11.2013© Houston Analytics Ltd 2

Know your

customers to

manage

sales and

satisfaction

Using

Analytics to

Bridge

Strategy with

action

The Seven

keys for

using

analytics

Is Analytics

Really

Needed?

IS ANALYTICS REALLY

NEEDED?

FRAGMENTED

PRODUCT AND MEDIA CONSUMPTION

Antti Syväniemi 20.11.2013

Fragmenting consumption leads to lower SKU penetrations

Product penetrations

Growing amount of

SKU’s and channels

lowers the penetration

of individual products

© Houston Analytics Ltd 4

ELECRIFICATION AND INTERNATIONALISATION


EXPLOSION OF INFORMATION VOLUMES


Trends Customers Competitors Weather


NEW WORLD – GOOD OLD WAYS?

• Fragmentation of product and media consumption

together with electrification and explosion of data

volumes has increased need for analytics driven

integrated marketing

• To be able to survive in this new era companies need to

learn how to identify the variating needs of the customer

and to use this insight to create continuous intelligent

customer dialogue

© Houston Analytics Ltd Antti Syväniemi 20.11.2013 7

Old tricks have lost their power in the world of

fragmented and polarized consumption!

KNOW YOUR CUSTOMERS TO

MANAGE SALES AND

SATISFACTION

THE NEW ERA OF MARKETING

MEASUREMENT


© Exakti Intelligence Ltd 2012

• Traditional assumption”Half of the marketing efforts are useless!

Just wish we knew which half!”

• Measured facta) “62% of the seconds/content of the TV-

ads do not affect consumers at all.

b) 24% of the seconds/content has a

negative impact.

c) Only 14% of the seconds/content

affect as wanted”


PREDICTED SALES POTENTIAL AS A BASIS

FOR REDEFINED MARKETING PROCESS

Passive/

Non customers

( Share of wallet

low )

To gain new

customers

Predicted Share Of Wallet and Sales potential

Customer

recruiting

programs for

central customer

groups

Occasional customers

( Share of wallet

average )

Upgrade the customer

relationship

Occasion related

programs (e.g. moving

the address)

Passive /

Non customers

present state

Goals

Activities

Occasional

customers

Committed customers

( Share of wallet

average )

Loyal customers

( Share of wallet

high )

Strengthen the

customer relationship

by relevant offers

Additional and cross sales programs

Loyalty programs

Committed customers

Strengthen the

customer relationship

by relevant offers


Logistics

Marketing

Category management

(assortments, price setting etc.)

Concept development

Sales, product, channel, time

Sales

Decom-

position

Sales, product, channel, time


Sales and margin figures

do not include any

explaining information

within themselves

When analyzed

information is linked to

decision points it becomes

a powerful management

tool

With multidimensional

information and analytics

we can understand the

reasons for development


INRICHED ENTITY OF SALES METRICS WORKS AS A

SOLID BASED FOR INTELLIGENT SALES PROCESS

WHAT’S THERE TO UNDERSTAND ABOUT

THE CUSTOMER?


The moment of truth

Customers needs

Attainability of the service network


Convenience

Habits

Taste

Cost


ANALYTICS CAN BE USED TO BOTH REVEAL THE

CUSTOMER DYNAMICS AND TO PREDICT POTENTIAL

Insight of present customer base

• Who are your most valuable

customers?

• What is their sales and profit share?

• What products or services they use

and why?

• What part of your customer base has

more sales potential? How can you

reach them?

Market and customer potential

• Who are the most potential

customers for your business?

• Who are your competitors

customers?

• What products or services they use

and why?

• How can you reach them?


USING ANALYTICS TO BRIDGE

THE GAP BETWEEN

STRATEGY AND ACTIONS

WITH ANALYTICS IT’S POSSIBLE TO SYNCHRONIZE

THE DIFFERENT INFORMATION AREAS


Synchronized customer,

market and process insight

Geographical

information

SKU & POS

data

Market

research

In-Site

behavior

National &

Customer

registers

Neural

marketing

Click streams

Various sources

of Big Data

Internet and

Social media


AT ITS BEST ANALYTICS CAN CREATE A COMMON

LANGUAGE FOR THE WHOLE ORGANISATION


2. The process entity

1. The chain concept or brand portfolio

• Definitions, emphasis and goals

WhatTo whom How Where

4. Influence of data and

metrics

Same information entity

for both defining the

strategy and aligning it with

everyday processes

Target groups’ location and

mobility

Target groups’ buying

behavior (Receipt and traffic

metrics)

Target groups’ preferences

and price elasticity

Target groups’ campaign

reactivity and media usage

Target groups’ shopping

times, volumes and sales

spikes

Location

Assortment

Service

Price

Site and warehouse logistics

Replenishment planning

Marketing and sales

When

Site location

Fraud detection

Category management

(incl. both product and service assortments)

Advertisement

Campaigns

Availability

Freshness

3. Data warehouse…………………………• Purchase, search and customer information

• External databases (e.g. trend and market data)

A

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CUSTOMER INSIGHT IS USEFUL ONLY WHEN

IT’S LINKED TO SUPPORT DECISION MAKING



1. The chain concept or brand portfolio




metrics




everyday processes


mobility



metrics)







spikes

Location

Assortment

Service

Price



Marketing and sales

When

Site location

Fraud detection

Category management


Advertisement

Campaigns

Availability

Freshness



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When information of your

customers and their needs

are linked to the planning

processes, they start to

improve the everyday

decisions and eventually lead

to better customer

satisfaction!

Campaign period

WHEN USED PROPERLY, ANALYTICS CAN PUSH E.G.

CAMPAIGN RESULTS TO THE NEXT LEVEL

Lo

ya

lty /

€

TimeLong term Short term

Collaborative

Shopper

approach

Best target

group pull

44,9%

Traditional

approach

Best target

group pull

16,7%

Analytics based collaboration in target group selection and

campaign planning produced a much better Pull %

© Houston Analytics Ltd Antti Syväniemi 20.11.2013

Sources: Shopper marketing 2012 and http://www.opas.net/Suora_2008/6_2.htm

Goal:

- A supermarket chain aimed to increase

the penetration of chosen categories

among certain customer segments. A

Supplier was seeking potential customers

for its’ new product line of the same

categories. A natural opportunity for

collaboration.

Target group:

- Health-conscious, Discerning and

Sophisticated customers

Case: Launch of the new product line of healthy products for health seeking customers

18

Campaigns purpose, goal and emphasis

WhatTo whom How Where When

http://www.opas.net/Suora_2008/6_2.htm

THE SEVEN KEYS FOR

USING ANALYTICS

FIRST KEY

– THE ORGANISATION?


Companies are often lacking

an information organisation...

... taking care of both validity of the

information and enriching it for the

use of business units.

Transferring

to

production

process


Practical actions

by pilot processDefinition

First

version

Practical

test and

approval

IT project for process

“validation”

Information organizations

responsibilities

Technology organizations

responsibilities

√

© Houston Analytics Ltd

SECOND KEY

– THE AGILE WORKING METHODS

21


Summarized data

+

=

+

=

Detail level data

Algorythm

Predicting

THIRD KEY

– DETAIL LEVEL OF THE DATA



Analytics tools

IBM SPSS

MODELER

FOURTH KEY

– ANALYTICS TOOLS

Easy to use graphical

user interface

Code managed user

interface

Automation of analytics

by C&DS -module

Agile graphics

and Databases


USING THE POWER OF DATABASES

DATABASE

It is some 20 times

faster to drive the

analysis processes

in the database!

IBM SPSS

Analytics tools


THE UNBEARABLE LIGHTNESS

OF DEPLOYMENT

• It took one member of our team

just three days at the first time

and one day at the second to

deploy the entire solution

• Due to existing expertise and

intuitive user interface, we were

able to start using it to derive real

value from day one


FIFT KEY- FULL SYSTEM RIGHTS

TO READ AND WRITE THE DATA


CRISP

%

V- Read and write 8 min

- Result calculation 1,34 s

- Calculation 17 h

- No results

Two ways



Databases

Predictive analytics and optimization tools(BAO)

ERP

CRM

POS

CLOSING THE LOOP

Marketing and sales

Assortment and price setting

Strategy

www

Market research


Management

processes and tools

Data-

warehouse

Predictions and

optimization

Data sources/

Operational

systems

SIXTH KEY

- USER FRIENDLY RESULTS

SIXTH KEY

- USER FRIENDLY RESULTS


450

9022

490

750

IBM SPSS

User friendly analytics views let business decision makers focus on their decision tasks instead of information cathering and report building


SEVENTH KEY

- THE HOLISTIC WAY OF USING ANALYTICS



1. The chain or brand portfolio




metrics




everyday processes


mobility



metrics)







spikes

Location

Assortment

Service

Price



Marketing and sales

When

Site location

Fraud detection

Category management


Advertisement

Campaigns

Availability

Freshness



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KEYS FOR ANALYTICS BASED

MANAGEMENT

• Nominate an information responsible role (CAO) for organization

• Try analytics (in agile way) in different processes

• Gather and store the data in most detailed level

• Invest into BAO tools

• Give analysts full rights for their tools

• Make it easy for end users to use analytics results

• Use analytics to create a common language for the organization


A Company who chooses analytics as a strategic emphasis can

become an analytics competitor within just couple years


HOUSTON ANALYTICS

D o n ’ t p a n i c .

HOUSTON ANALYTICS

Antti Syväniemi

CEO

Houston Analytics Ltd

+358 50 387 5971

[email protected]

www.houston-analytics.com

@syvaniem

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