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Published by Will Waugh
This paper is designed to give managers and other marketing professionals an introduction to applying analytics to marketing so you can significantly improve outcomes.You’ll learn about building an analytical framework for marketing that will help you:

Increase response rates, customer loyalty, and ultimately ROI, by contacting the right customers with highly relevant offers and messages.
Reduce campaign costs by targeting customers most likely to respond.
Decrease attrition by accurately predicting customers most likely to leave and developing the right proactive campaigns to retain them.
Deliver the right message by segmenting customers more effectively and better understanding target populations.
This paper is designed to give managers and other marketing professionals an introduction to applying analytics to marketing so you can significantly improve outcomes.You’ll learn about building an analytical framework for marketing that will help you:

Increase response rates, customer loyalty, and ultimately ROI, by contacting the right customers with highly relevant offers and messages.
Reduce campaign costs by targeting customers most likely to respond.
Decrease attrition by accurately predicting customers most likely to leave and developing the right proactive campaigns to retain them.
Deliver the right message by segmenting customers more effectively and better understanding target populations.

More info:

Published by: Will Waugh on Nov 19, 2010
Copyright:Attribution Non-commercial

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01/31/2011

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WHITE PAPER

Turning Customer Data into Analytical Marketing Fuel
How to Use Analytically Driven Customer Insight for Extraordinary Competitive Advantage

TURNING CUSTOMER DATA INTO ANALYTICAL MARKETING FUEL

Table of Contents
Foreword by Thomas H. Davenport .................................................................ii Executive Summary ........................................................................................1 The Brave New World of Marketing ................................................................1 The Data Explosion .....................................................................................1 The Rapid Power Shift to Consumers ..........................................................2 What These Trends Mean for Marketers Like You ........................................2 The Real Value of Analytically Driven Customer Insight ................................3 Moving Beyond Marketing and Across the Enterprise .................................4 An Evolutionary Process: Moving Toward Analytically Driven Marketing ....4 Showcasing the Value: Case Studies ..............................................................7 A Multichannel Retailer: Best Buy ...............................................................8 A Consumer Brand Marketer: Transitions Optical Inc...................................8 A Service Provider: Absa Bank ....................................................................9 Lessons Learned..........................................................................................9 Enabling the Vision: The Need for an Integrated Technology Platform .......10 SAS® Solutions Can Help ...............................................................................10 About SAS ......................................................................................................11

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Foreword by Thomas H. Davenport
As discussed in this paper, there is a new game that virtually all marketers must eventually embrace if they’re going to be successful. Analytics was once just the province of a few direct marketers and market researchers, but now the entire field of marketing is being transformed by this capability. Whether the focus is consumer or industrial marketing, and whether the customer channel involves a sales call, contact with a call center, a Web click, or an e-mail, marketing is becoming increasingly analytical. There is no longer any excuse for not knowing whether your advertising or your promotions are working. It is possible to test and analyze any campaign or any change in how you go to market with analytics. This is, of course, a major change in culture for many marketers. It’s probably safe to say that many people who chose marketing as a career did not do so because they loved data and statistics. Therefore, many marketers will need considerable retraining and reorientation for this new world. It isn’t that the old creative and intuitive capabilities will go away, but they will have to be supplemented by a new set of analytical skills. Of course the best marketers will continue to be those that have an intuitive and empathetic understanding of customers, but that cannot be the only perspective. It must be complemented by empirical, quantitative analyses of the behaviors customers actually exhibit and the impact of marketing activities on those behaviors. It is an exciting time for the field, and one in which careers and reputations of marketers will be rebuilt or newly established. In other words, it’s a great time to be in marketing, but only if you embrace analytics.

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Executive Summary
Today’s marketing executives are witnessing a watershed moment in history: the convergence of unprecedented access to customer data and the emergence of highly empowered customers who demand highly personalized offers and service. It’s a perfect storm of sorts – a “new normal” in which companies can survive and even thrive if they can turn customer data into insight, use it to align around their customers and build trust-based relationships with them. Given the scale and speed of the trends affecting marketing today, one thing is clear: businesses that fail to strategically leverage analytically driven customer insight will gradually become obsolete over time. Let’s take a closer look at why – and what you can do to evolve your marketing organization’s ability to turn data into customer insight, and insight into competitive advantage.

The Brave New World of Marketing
There are two dominant trends transforming the business of marketing: 1) the incredible explosion of data being created by governments, businesses and consumers; and 2) the shift in power from companies to consumers that’s been driven by the Internet.

The Data Explosion
The world contains an unimaginably massive amount of digital data today – and it’s increasing tenfold every 10 years.1 As data becomes more abundant, the challenge is not finding information, but rather quickly pinpointing the relevant bits needed to make informed, timely decisions. Many companies are jumping on the data bandwagon, collecting, storing and linking massive amounts of data. (Think Wal-Mart, which handles over 1 million customer transactions every hour, feeding databases estimated at 2.5 petabytes, which is equal to 167 times the number of books in the US Library of Congress.2) But perhaps even more importantly, customers are generating massive amounts of net-new digital information – whether it’s through postings on Facebook and Twitter, “data exhaust” created as website visitors click through Web pages, data collected by cookies and other opt-in Web tools, product reviews and blogs written by users, and more. This kind of data is growing exponentially in both size and in potential strategic value to marketers who need to engage in a 1-to-1 manner with these consumers, as it can provide a direct window into their wants, needs, preferences, interests and attitudes, and more.
1 “Data, Data Everywhere,” The Economist (February 25, 2010). http://www.economist.com. 2 Ibid. 3 Weigand, Andreas, “The Social Data Revolution(s),” Now, New, Next, May 20, 2009 (http://blogs.harvardbusiness.org/now-new-next/2009/05/the-social-data-revolution.html).

■ Amazon’s Andreas Weigend describes this trend another way: “In 2009, more data will be generated by individuals than in the entire history of mankind through 2008.”3

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The Rapid Power Shift to Consumers
Over the past few years, there’s been an inexorable power shift to consumers. For example, comparison shopping sites such as Pricegrabber.com enable buyers to instantly find lowest-cost vendors for specific items in seconds. Cameras in mobile phones can even scan barcodes in stores and enable users to comparison shop at local stores in seconds. They can also avoid communications they don’t want to receive – for example, by using DVRs to bypass commercials. Equally significant, with the advent of Web 2.0 technologies, customers can share their opinions online and influence tens of millions of people to buy from you – or not. Jaded by traditional marketing and advertising, most are leveraging customer reviews on sites such as Amazon.com to decide what to purchase and from whom; according to an A.C. Nielson Global Online Consumer Survey of over 25,000 Internet consumers, people now trust recommendations and opinions from real friends and virtual strangers the most.4 Today’s customers also demand product and service information that’s personally relevant, timely and delivered through their preferred channels, as well as interactive online relationships. This means that you now need to manage the four P’s of marketing on an individual, 1-to-1 level. Even after a sale is made, today’s customers expect that all future interactions – such as handling a query, scheduling a repair or resolving a billing issue – will be handled in a customer-centric manner.

What These Trends Mean for Marketers Like You
So as a marketing executive, what does all of this mean to you? What you’re witnessing is a breakdown of the traditional mass marketing model – and the establishment of a revolutionary, 1-to-1 marketing model that’s customer-centered and personalized. As noted by independent research firm Forrester Research Inc., “Only 13% of consumers say that the ads they see are relevant to their wants and needs, and even fewer find direct mail and e-mail marketing relevant. Consumers have had enough of marketing, and more than three-quarters say they want companies to let them decide how a company can communicate with them.”5 In other words, consumers want to be in the driver’s seat. They also expect a consistent experience with a company across channels.6 And, they want a dialogue with the companies – one that clearly demonstrates employees take into account what the business already knows about them. To do this, you need to leverage the customer data explosion for competitive advantage. Rather than just using the same syndicated data available to your competitors, you need to create unique analytical insight about customers and prospects based on what they are buying, where, how they use your website, their social media interactions and more – and tailor interactions based on this insight.
4“Global Advertising: Consumers Trust Real Friends and Virtual Strangers the Most,” A.C. Nielson Global Online Consumer Survey, April 2009. 5 Frankland, David, “The Intelligent Approach to Customer Intelligence,” Forrester Research Inc., October 16, 2009. 6 Ibid.

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The foundation for 1-to-1 marketing is development of a large reservoir of unique, analytically driven insight about each customer. Once this is in place, you can use it to foster engaging customer dialogues across channels and learn from these interactions to make improvements in the future. More specifically, this involves: • Capturing detailed customer information across the enterprise and merging it with demographic and other data for a complete customer view. • Analyzing this information to generate new, microlevel insight unique to your business. • Using this insight to engage your customers in relevant and effective dialogues, which enables you to create differentiating customer experiences that emphasize building long-term relationships over individual transactions. • Managing this process with key performance indicators (KPIs) that help you improve how you engage with the customer.

The Real Value of Analytically Driven Customer Insight
Your success is a function of the quality of your customer data and insight and how you choose to leverage customer data to drive better decision making, customer-centered marketing and personalized experiences. By turning data into trusted, analytically driven customer insight, you can harness the data explosion for competitive advantage – for example, by engaging empowered customers through customer-centered products, services and experiences. The impact of getting this right is not only more profitable or loyal customers, but increased likelihood of turning them into advocates for your business or organization through Web 2.0 technologies and social media – arguably one of the most effective marketing channels today. According to Forrester, marketing executives play a vital role in helping companies evolve to a more mature use of analytically driven customer insight (see sidebar). The CMO of the future will, for example, focus on data-driven marketing. This means that rather than making key decisions regarding product, price, place (distribution) and promotion (the four P’s of marketing) based on gut instinct and groupthink, you can make fact-based decisions based on trusted, analytically driven insight. Equally important, you can develop unique customer insight and use it to create customercentric, cross-channel strategies. Armed with the right analytical insight, you can make fact-based decisions about the processes and customer interactions that ultimately result in revenues and profits. When all customer interactions are driven by customer insight, you can create consistent, differentiating experiences that increase customer retention and long-term value, free your company from the effects of commoditization and price wars, and motivate customers to be advocates for your business or organization with friends, family and strangers through social media.

The Next-Generation CMO Will Come from Customer Intelligence
As chief marketing officers (CMOs) “struggle with more empowered customers who have limited tolerance for marketing and face increased demand for marketing accountability, firms will elevate Customer Intelligence within their organizations and use it as a competitive weapon. Customer Intelligence will move to the front of the room, and Forrester believes that the next-generation CMO will evolve from a Customer Intelligence role – we’re already seeing it at companies such as First Tennessee Bank, Gap, and Harrah’s Entertainment.”7

7 Ibid.

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Moving Beyond Marketing and Across the Enterprise
According to Tom Davenport, world-renowned thought leader and co-author of Competing on Analytics, the larger goal is to move beyond instinct- and historydriven marketing to analytically driven marketing, whereby all business decisions are driven by analytics. In his opinion, “becoming more analytical is not solely the responsibility of a manager: it’s an essential concern for the entire organization.”8 Why? Because “Putting analytics to work can help your managers and employees make better decisions, and help your organization perform better.”9 Even if your management team isn’t interested in becoming an “analytic competitor,” he notes that “We still urge companies, over time, to move toward a mentality and strategy of competing on analytics – we think that’s where the greatest benefits lie. But those who seek a more incremental approach can still be more analytical, even if primarily competing on other factors, such as product innovation, customer relationships, operational excellence, and so forth.”10 Forrester envisions something similar, noting that “In most mature firms, the Customer Intelligence function becomes a command center for the business – serving up actionable information as the fuel that drives multi-channel customer communications, product development, strategic planning and even operations.”11

About Tom Davenport, President’s Chair in Information Technology and Management, Babson College
Tom Davenport’s books and articles on business process re-engineering, knowledge management, attention management, knowledge worker productivity and analytical competition helped to establish each of those business ideas. He is the author or co-author of nine books for Harvard Business Press, most recently Competing on Analytics: The New Science of Winning (2007) and Analytics at Work: Smarter Decisions, Better Results (2010). Davenport has also written 15 articles for Harvard Business Review. Davenport has an extensive background in research and has led research centers at Ernst & Young, McKinsey & Company, CSC Index and the Accenture Institute of Strategic Change. Davenport holds a BA in sociology from Trinity University and an MA and PhD in sociology from Harvard University. For more information, visit: • om Davenport’s website at T www.tomdavenport.com. • he International Institute for T Analytics (IIA), dedicated to the advancement of analytics in everyday business practices: www.iianalytics.com.

An Evolutionary Process: Moving Toward Analytically Driven Marketing
According to Davenport, most businesses are far from strategic users of customer data. He writes: Most companies today have massive amounts of data at their disposal. The data may come from transaction-oriented applications such as ERP (enterprise resource planning) systems from software vendors such as SAP and Oracle, scanner data in retail environments, customer loyalty programs, financial transactions, or clickstream data from customer web activity. But, what do they do with all this information? Not nearly enough … They collect and store much data, but they don’t use it effectively. They have information, and they make decisions, but they don’t analyze the information to inform their decision-making.12

8 Reprinted by permission of Harvard Business Press. Excerpt from Analytics at Work: Smarter Decisions, Better Results by Thomas Davenport, Jeanne Harris, and Robert Morison (2010). 9 Ibid. 10 Ibid. 11 Frankland, David, “The Intelligent Approach to Customer Intelligence,” Forrester Research Inc., October 16, 2009. 12 Reprinted by permission of Harvard Business Press. Excerpt from Analytics at Work: Smarter Decisions, Better Results by Thomas Davenport, Jeanne Harris, and Robert Morison (2010).

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Sound familiar? You’re not alone. The question is, then, how can you evolve your organization’s use of customer data and analytics for competitive marketing advantage? Davenport provides a useful five-stage model of progress (which is described more fully in his book Competing on Analytics) to help you identify where your business stands relative to others – and point you to what to strive for next: • Stage 1: Analytically impaired – The organization lacks one or several of the prerequisites for serious analytical work, such as data, analytical skills or senior management interest. • Stage 2: Localized analytics – There are pockets of analytical activity within the organization, but they are not coordinated or focused on strategic targets. • Stage 3: Analytical aspirations – The organization envisions a more analytical future, has established analytical capabilities, and has a few significant initiatives under way, but progress is slow – often because some critical factor has been too difficult to implement. • Stage 4: Analytical companies – The organization has the needed human and technological resources, applies analytics regularly and realizes benefits across the business. But, its strategic focus is not grounded in analytics, and it hasn’t turned analytics to competitive advantage. • Stage 5: Analytical competitors – The organization routinely uses analytics as a distinctive business capability. It takes an enterprisewide approach, has committed and involved leadership and has achieved large-scale results. It portrays itself both internally and externally as an analytical competitor.13 It’s important to note that analytical competitors, as defined by Davenport, learn how to use insight about individuals – and people like them – to answer fundamental business decisions, such as where to place new stores, what products to carry, how to manage reserve requirements and more. They go on to use analytics to make enterprise-level decisions that go well beyond marketing. To help you evolve your organization over time, Davenport complements these stages with an action plan for evolving your business from one stage to the next.
Table 1: Evolving Step by Step From Stage 1 Analytically Impaired to Stage 2 Localized Analytics Gain mastery over local data of importance, including building functional data marts. From Stage 2 Localized Analytics to Stage 3 Analytical Aspirations Build enterprise consensus around some analytical targets and their data needs. Build some domain data warehouses (e.g., customer) and corresponding analytical expertise. Motivate and reward cross-functional data contributions and management. From Stage 3 Analytical Aspirations to Stage 4 Analytical Companies Build enterprise data warehouses and integrate external data. Engage senior executives in EDW plans and management. Monitor emerging data sources. From Stage 4 Analytical Companies to Stage 5 Analytical Competitors Educate and engage senior executives in the competitive potential of analytical data. Exploit unique data. Establish strong data governance, especially stewardship. Form a BICC (Business Intelligence Competency Center) if you don’t have one yet.

Reprinted by permission of Harvard Business Press. Excerpt from Analytics at Work: Smarter Decisions, Better Results by Thomas Davenport, Jeanne Harris, and Robert Morison (2010).
13 Ibid.

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Forrester Research provides another useful model that complements Davenport’s stages of maturity – a three-stage Customer Intelligence Maturity Model that highlights how business models evolve as companies become more strategic users of customer intelligence (see Figure 1). Forrester’s research in this area found that despite widespread existence of customer intelligence functions within businesses today, their overall customer intelligence “quotient” varies considerably. Of the 301 customer intelligence professionals who participated in Forrester’s survey, 54 percent were in the functional intelligence stage, 34 percent were in the marketing intelligence stage and 12 percent had achieved the strategic intelligence stage.14

Figure 1: Forrester’s Customer Intelligence Maturity Model (Source: The Intelligent Approach to Customer Intelligence. Forrester Research. October 16, 2009).

14 Frankland, David, “The Intelligent Approach to Customer Intelligence,” Forrester Research Inc., October 16, 2009.

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Showcasing the Value: Case Studies
Regardless of the type of business model under which your company operates, analytically driven customer insight can play a vital role in making it more competitive in the short and long term. Let’s look at how this works by considering three common business models: • A multichannel retailer. • A consumer brand marketer. • A service provider. While businesses operating under these models have different needs, challenges and ways to access consumer data, the following case studies – all based on Davenport’s work – demonstrate that all can leverage customer insight to make better decisions, engage with customers in ways that build trust and compete more effectively.

■ “Wal-Mart is famous for sharing data with its suppliers, with the expectation that suppliers will use the information to lower prices and increase sales in partnership with the retailer. According to a 2006 Accenture study, 24 percent of organizations had such direct linkages with customers and 15 percent had them with suppliers. A company that is committed to helping its customers and suppliers make better decisions will have to share not only data, but also analytics and analytical expertise, to create their “extended enterprise.””15

Three Common Business Models Defined from a Marketing Perspective
A multichannel retailer: Retailers resell products developed by consumer products companies, so your business controls customer interactions – but not product development and wholesale pricing. To optimize customer interactions, your focus is on building store loyalty – not brand loyalty – by creating store brands and unique shopping experiences that are meaningful and differentiated for customers. You can generate unique customer insight by collecting and analyzing point-of-sale data, loyalty card data and more – insight that allows you to optimally tailor products, offers and service levels for each individual. A consumer brand marketer: If you work for a consumer products manufacturer, your business controls the development and wholesale pricing of your products – but you don’t control customer interactions at the point of sale. So you have little customer data and insight into who is buying goods and where, but lots of data regarding wholesale orders, shipment dates, sales volumes and more. You can gain customer insight by looking at blogs and tweets, creating websites that capture customer mind share, and offering loyalty programs. These communication vehicles help your business and its brands become, and stay, relevant to consumers. A service provider: If your business is a service provider, you are in the unique position of having full control over products, pricing, marketing and customer interactions across channels. This also means that you can collect nearly unlimited data about individual consumers, analyze it and turn it into strategic insight for engaging effectively with customers in a 1-to-1 manner.

15 Reprinted by permission of Harvard Business Press. Excerpt from Analytics at Work: Smarter Decisions, Better Results by Thomas Davenport, Jeanne Harris, and Robert Morison (2010).

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A Multichannel Retailer: Best Buy
As a retailer, Best Buy, the FORTUNE 100 consumer electronics retailer, is a good example of how a business that controls the customer interface, but not the products that it sells, can leverage analytically driven customer insight. The company has made analytics a critical component of how it works and competes ever since 1997, when it embarked on a two-year “scientific retailing” initiative that led to a major financial turnaround. In 2004, former CEO Brad Anderson began to emphasize “customer-centricity” as a means of maintaining the company’s growth trajectory. By 2006, it was clear that the company’s future lay in building an enterprisewide analytical capability to drive data and decision making to individual stores where employees are closest to their customers. The team developed a system that would give stores and functional groups access to data-driven insights about their customers for the first time and enable them to integrate fact-based decisions into their daily business routines. It would also create a new, enterprisewide culture of analytics, disseminating and revitalizing the headquarters’ analytical focus. The team then defined performance metrics to be tracked in a way that best reflected Best Buy’s commitment to customer-centricity. As operations across the enterprise embraced their new analytical capabilities, success stories began to emerge. For example, Best Buy was able to determine through analysis of its RewardZone loyalty program member data that its best customers represented only 7 percent of total customers, but were responsible for 43 percent of its sales. It then segmented its stores to focus on the needs of these customers in an extensive customer-centricity initiative. In addition, store managers began to use data-driven insights to review business practices and to seize new opportunities.16

■ “The CEO [Terry Leahy] of the European-based grocery retailer Tesco says that the mission of the company is to earn and grow the lifetime loyalty of its customers. Their core aim, he says, is “to understand customers better than anyone.” Having more information about customers is one side of the Tesco story, but Leahy notes that information benefits customers as well. “[Access to information] helps retailers know much more about what their customers want and think. But it also gives customers a very powerful tool. They can compare prices and buy online at the click of a mouse. They can look at a retailer’s ethical or environmental policies and find out what is being said about them anywhere in the world.” Tesco’s visionary target is world-class customer knowledge.”17

A Consumer Brand Marketer: Transitions Optical Inc.
Transitions Optical manufactures photochromatic lenses that darken in bright light and sells its products through retail stores. Since Transitions sells its products to glasses manufacturers and optical labs, it has no direct contact with consumers. That meant no consumer data to judge the effectiveness of marketing programs. In 2002, Transitions executives authorized the creation of a customer data warehouse, a process that would take more than six years. It meant the gathering of customer data from multiple customers and channel partners. The data arrived in 30 different information formats, on such media as paper printouts, e-mail and even paper napkins. Transitions then worked with an external consultant to assess how effectively its marketing dollars were being spent. It embarked upon a “marketing mix analysis” to determine how well different marketing programs were working, and which channels to the customer were more effective. Maria Zabetakis, the Director of Americas
16 Ibid. 17 Ibid. 18 Ibid.

■ “Consumer packaged goods companies often don’t know their customers, but Coca-Cola has developed a relationship with (mostly young) customers through the MyCokeRewards.com website that the company believes has increased its sales and allowed it to market to consumers as individuals. The site attracts almost 300,000 visitors a day – up 13,000% from 2007 to 2008.”18

TURNING CUSTOMER DATA INTO ANALYTICAL MARKETING FUEL

Information Technology, says the data and analyses have been very helpful in supporting marketing decisions. “We can now accurately predict what kinds of ad campaigns will generate what levels of lift for what customer segments. Our management team is very analytically savvy, and we’re firm believers in business intelligence. But we couldn’t have done this without compiling data on our customers’ customers.”19

■ “A top 10 US bank with over
3,000 branches found it nearly doubled the balance per customer interaction by using collaborationbased analytic technology when dealing with customers. First year profitability per interaction increased by 75% after taking into account the additional value provided to the customers by the bank. Sales productivity of frontline bank staff also increased by almost 100% in terms of balances sold per hour.”21

A Service Provider: Absa Bank
As a bank, Absa is responsible for the products it creates, all service delivery channels and all customer interactions. Therefore, it provides an excellent example of how customer analytics can be used to improve all of these areas of operations and the resulting customer experience. Absa Bank established its information management (IM) group in 2001, and was initially focused on customer information. David Donkin, the first head of the IM group, explained the group’s mission: allow information- and knowledgebased strategy formulation and decision making, and leverage information to improve business performance. These are at the heart of what it takes to make an organization more analytical. According to Donkin, when the IM group was formed, Absa’s data warehouse was “not customer-centric, not operationally stable and not business-directed.” It stored information that no one really needed, and that few knew how to find. Today the IM group improves the relationship between IT at the back end and business decision makers on the front end. It facilitates such analytical applications as scorecards, fraud detection, risk management and customer analytics, which drive cross-sell, up-sell, retention, customer segmentation and lifetime value scores.20

■ “Capital One ... made extensive
use of consumer credit scores for extending credit and pricing in its credit card business, but soon most of its competitors followed suit. So it started to fool around with the credit score data, determining through detailed analysis that some low score applicants might be more likely to pay back their loans than the score would predict. Having identified some data that differentiates customers, it was able to differentiate its own services – even though the initial input was a widely employed data source.”22

Lessons Learned
All three of these companies achieved greater success through strategic use of analytically driven customer insight. It’s what is transforming their business models, enabling them to compete more aggressively – even in more commoditized industries – and drive growth at a time when most companies are stagnant at best. How are they doing it? These organizations have several things in common: • Leadership at the top that understands the value of customer intelligence and drives its use across the organization. • An enterprise strategy emphasizing the strategic importance of analytically driven customer insight. • An integrated technology platform for managing data; creating customer insight; and driving, automating and tracking interactions.
19 Davenport, Thomas H. “Make Better Decisions,” Harvard Business Review, November, 2009, http://hbr.org. Excerpt posted by International Institute for Analytics, 2010, at: http://www.iianalytics.com 20 Reprinted by permission of Harvard Business Press. Excerpt from Analytics at Work: Smarter Decisions, Better Results by Thomas Davenport, Jeanne Harris, and Robert Morison (2010). 21 Ibid. 22 Ibid.

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Enabling the Vision: The Need for an Integrated Technology Platform
The technology platform used to support analytically driven customer intelligence must enable the collection of detailed profile and behavior data, the analysis that turns this data into unique customer insight, and the right tools for leveraging this insight to personalize and improve customer interactions across channels. From a marketing perspective, a structured way of thinking about this is in terms of the “three I’s” of marketing – a customer-centric marketing model that highlights the role of analytically driven customer knowledge in multichannel marketing strategies: • Deepen customer insight – by managing quality customer data, predicting customer behavior and profiling and segmenting customers. • Choreograph customer interactions – by managing and optimizing strategies and engaging in high-potential customers. • Continuously improve marketing performance – by measuring and reporting results, optimizing marketing investments and learning from every customer interaction. The three I’s are quickly emerging as the higher level of marketing management activities. As the four P’s of marketing begin to be managed by empowered customers, increased emphasis is being placed on the three I’s as new strategic levers to control outcomes. These levers – when powered by the right technologies – enable you to manage the multichannel customer experience; align the organization around high-potential customers; and build a loyal, profitable customer base that proactively advocates for your business. Each of the three I’s requires special organizational competencies – and when you link them together, you can support an enterprise business model that aligns your organization – and the delivery of its products and services – around the customers who represent your best opportunities for profitable, long-term growth. In short, this is a model for growing a durable, profitable customer base, building relationships with each customer, and turning them into advocates for your business.

SAS® Solutions Can Help
Are you prepared to take advantage of the two pivotal events transforming how companies will compete in the years to come – the data explosion and the emergence of highly empowered customers who demand highly personalized interactions? Don’t get left behind. The technical platform and best practices needed to ensure your success are available today – from SAS. SAS is the leading provider of enterprise customer intelligence platforms that support the three I’s of marketing – insight, interaction and improvement – in a seamless, end-to-end manner. As shown

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in Figure 2, our integrated technologies enable you to deploy customer-centric business strategies by supporting a complete, closed-loop business process for: • Managing the multichannel customer experience. • Aligning your organization around high-potential customers. • Building a loyal and profitable customer base that advocates for your business or organization.

Figure 2: SAS supports a closed-loop, customer-centric business model based on the three I’s.

For more information about how SAS can help you evolve into a more effective competitor through the strategic use of analytically driven customer insight, visit www.sas.com/customer-intelligence, where you can view success stories, white papers and other resources.

About SAS
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®.

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To contact your local SAS office, please visit: www.sas.com/offices
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