NASSCOM

Marketing Analytics Report

Operations in San
Marketing Research
250+ employees Francisco
and Advanced Analytics
and India
www.absolutdata.com AbsolutData Proprietary and Confidential
Sections

Marketing Analytics Overview

Trends in Marketing Analytics

Key Challenges for Industry Players

Way forward

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 Marketing analytics enable CMOs to make data driven
decisions
Illustrative
Sales & Marketing issues addressed leveraging analytics
Bottom line impact Top line impact

Price & Sales and Product

Branding CRM
Promotions Distribution Development

 Who are  How  Who are  How  What new

Strategic my should I my best should I products to
customers? price the customers? distribute introduce?
products? products?
 What are  What  How can I  What  What
their needs? should the retain & trade features to
promotion grow them? incentives include?
strategy be? should I
run?

 How  What base  What offers  How much  Which

much price should should I to distribute variants
should I I charge for run to win- through should I
spend on my back the introduce?
branding? product? customers? channels?
 What  What  How do I  Which  Should I
message promotions maximize trade introduce
Tactical
should I should I run response to incentives newer pack
communicate this year? work best? types?
campaigns?

Impact

SOURCE: AbsolutData Analysis

3
 Marketing analytics solutions continue to evolve

Illustrative
Evolution of Marketing analytics solutions

Descriptive Prescriptive Executive

 Summarize large “volumes”  Analyze past & large  Incorporate high

Business of data to understand past “variety” of data to “velocity” data to self-
Challenges better predict future better correct & execute better

 Brand Tracking
 Market Mix Modelling
CPG  Market  Sentiment
 Shopper Insights
Performance Analysis
Dashboarding
Travel  Promotion Tracking  Travel Wallet & Share  Contact Optimization
B2C

&  Loyalty Programme  Promotion Performance  Customer Experience

Hospi Performance Forecasting Management
tality
 Store Profitability Analysis  Market Basket Analysis  Location based Marketing
Retail
 Category Management  Sales Forecasting  Product recommendation

 Sales Force Effectiveness  Customer Lifetime Value

B2B

Technology
 Customer Account Dashboards  Price Optimization / Conjoint

SOURCE: Company Websites; AbsolutData Analysis;

4
 Indian industry has an opportunity to grow to over $1.2 BN
at 25% CAGR by 2020
Illustrative
Marketing Analytics potential for India (in $ billions)

1.4
1.2
1.2

0.8

0.6

0.4
0.2
0.2

0
2012 2020

SOURCE: Industry Reporting; NASSCOM KPO Report; AbsolutData Analysis

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 Value chain of analytics work being delivered from India

High High-to- Medium Medium- Illustrative

Low to-Low
Medium

Solutions Global Adoption Current State of Indian service providers

 Real Time Digital Feeds  Services being delivered leveraging existing

End User App  User Developed products developed in mature markets
Models  Interactive  Limited product development
Dashboards
 Market Assessment  Leveraging / modifying algorithms and
Modelling  CRM methodologies developed in mature markets
 Marketing Effectiveness  Initial investments in R&D have happened

 Metrics Reporting  Being provided extensively as service

Reporting/
 Dash boarding  Product development still in its infancy
Visualization
 Ad-hoc analysis

 Data Integration Mature players with extensive experience

Data Management  ETL services are present
 Digital Data Integration Providers leverage extensive experience of
delivering IT services over the years

 Data Sourcing Already well entrenched established players

Infrastructure  Data Warehousing in this space
 Tools and Technologies Although it is ubiquitous across geographies,
 Organizational Development India still enjoys a cost advantage

SOURCE: AbsolutData Analysis

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2 Trends in Marketing Analytics
Trends
Marketing Analytics is top on the agenda of
CXOs
CMOs are dealing with increasing
complexities in the current environment
Marketing Analytics solutions now need to
integrate with organization wide functions
Newer digital platforms are increasingly
becoming relevant for marketing decisions
Marketing Analytics is increasingly being
leveraged real time for execution support
Implications for Players
 Marketing Analytics engagements are likely to increase in number (more clients) and size
(organization wide implementation)
 Players need to focus their sales efforts to CXOs, in addition to BU heads
 Solutions are no longer only judged on technical parameters but also on business impact
potential
 Solutions need to adapt to the new realities of larger volume, velocity and variety of data
that are increasingly available in marketing
 Players need to develop solutions that are simple to understand and use, to ensure wider
adoption within organizations
 Solution scope is now enterprise wide and that are consistently applicable across business
units across regions
 Solutions need to be embedded in IT platforms that integrate well with existing client
applications
 Players need to upgrade their implementation skill sets across consulting, large scale
project implementation & IT
 Solutions need to be re-worked ab-initio to ensure optimal results
 Players need to up-skill their IT & data handling capabilities
 Players need to be flexible in leveraging the various technology platforms as the landscape
is still evolving
 Solutions are increasingly expected to be intelligent and actionable at the hands of non-
technical end-users
 Solutions need to be more plug ‘n’ play and embed well in existing client IT systems
 Solutions need to self correct with minimal human intervention
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3 Challenges in Marketing Analytics

Challenges Opportunity for Players

 Disaggregate the analytics role into 3 sub-components that are widely available in India –
Players are unable to scale up their
Business / Domain specialists, Technical experts and Data scientists / engineers
analytics capabilities due to a global
 Increase the employable talent for Analytics by increasing or improving skills in areas like
shortage of deep analytics talent
consulting skills and business / domain understanding

Delivering analytics solutions globally needs  Players need to build a well coordinated global delivery model with a mix of onsite talent (for
a balance in solution consistency across solution localization) and off-shore talent (for solution consistency)
regions while retaining a degree of  Players should invest in building on-site / near shore delivery centers to house talent
localization sourced locally

 Players need to invest in employee engagement beyond rewards and focus on meeting
Industry faces a high cost in attrition as
individual’s aspiration on accelerated career development / progression
analytics is a combination of complex skills
 Players need to reduce the time & cost of on-boarding by setting up learning academies
that are hard to find and take time to build
(similar to what IT players have done)

 Players need to build productized solutions, specific to industry verticals, that are proven
Clients are demanding “plug’n’play”
and can be configured easily
solutions that can be setup faster and are
 Players can increase solution fit by co-creating solutions with clients as well as by
more cost effective
incorporating the learning / best practices from their various other experiences

 Players need to be flexible to adapt to the various BIG data technologies while the industry
Leveraging BIG data requires players to
continues to evolve
have new skills especially in technology and
 Players need to invest up-front in building new frameworks / solutions to incorporate BIG
business integration
data into the current traditional solutions

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 Top predictions of changes in Analytics for next 5 years
Predictions for Future
Predictions
 Deep Analytics talent will increasingly
leverage two types of talent - “Computer
science” PGs for machine learning
Talent solutions and “Psychology” PGs for
tailoring solutions that cater to individual
needs / preferences
 “Self-healing / Machine learning
technologies will become an indispensible
Solution part of mainstream solutions deployed”
 “Clients needs of one-stop, end-to-end
solutions will trigger greater consolidation
Eco in the industry”
System
SOURCE: Company Websites; Industry Articles
Illustrative
Illustrative Examples
 Facebook is already hiring psychology PhDs into
their Analytics unit to better understand
individual’s interests and actions in order to
appropriately tailor their solution offerings
 Google cloud based machine learning API helps
businesses adopt machine learning as a part of
their enterprises
 IBM has been increasingly consolidating tools
such as Cognos and SPSS to broaden its
analytics portfolio and bundle them along with its
IT product / services offering. They are also
focusing on big insights and big streams
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