1. Das
Next Best Offer-Konzept
Robert Schumacher
Customer Intelligence Solutions Manager, SAS Schweiz
Swiss CRM Forum, Zürich, 24. Juni, 2010
Copyright © 2010 SAS Institute Inc. All rights reserved.

2. The TV used to be the tribal camp fire
and got 100% attention…..
2
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3. … but now it’s just another
light source…. doing all kind of other
activities
3
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4. How the customers used to buy
Based on how we used to do outbound promotional marketing
Source: Forrester research 4
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5. How the customers buy today
A more disrupted pathway – influenced by ’Signals’ & ’Events’
Usage Market & Competitor
Experience Dynamics
Recommendations Peer Review and User
From Friends Generated Content
5
Copyright © 2010, SAS Institute Inc. All rights reserved.

6. Higher success rates with Dialoque Marketing
Customer Success
View Rate
Enterprise-Initiated
Marketing-Driven
Traditional Campaign Intrusive 3%
Customer-Triggered
Product as Service Event Driven Contact Convenient 20%
Customer-Initiated
Relationship-Driven Real Time Interaction Appropriate 40%
6
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7. The Next Best Offer-Concept
Offer Based Marketing “Let me find a group of
people to tell about it.”
“I have an offer…”
Offer
Next Best Offer Concept
“I have a person with a “Let me find thebest offer
specific need or behaviour…” to fit this persons need.”
‟
offer
Offer
offer offer
Offer offer
offer
7
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8. Key Challenges of Next Best Offer
“The best determination of a customer‟s „next best
offer‟, delivered in a controlled, coordinated and
flexible manner through all customer facing channels”.
SAS Customer Intelligence solutions solves these
challenges to give:
Effectiveness in analytical insight
Coordination of the customer contacts
Flexibility of decisioning process
Integration into all channels
Control of deployment
8
Copyright © 2010, SAS Institute Inc. All rights reserved.

9. What your call centre staff could experience
 Next Best Offer prompts
either embedded into
existing call centre
applications
 Or surfaced as an
overlay pop-up device
as shown
 Features
 Customer profile
dashboard
 Alert messages
 Prior marketing history
 Next Best Offers
9
Copyright © 2010, SAS Institute Inc. All rights reserved.

10. What your customer could experience
Personalised offer based
on next best offer
analytics
Situational Offer based on Marketing Product
clickthru campaign or Promotion, based on
sponsored search organisational need
All coordinated through SAS Customer Intelligence solutions
10
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11. Vodafone Australia
Live deployment of Next Best Offer in inbound call centres
Total recommendations returned: 9.1%, of which……
» “Yes Upgrade” Responses: 46% response rate
» “Maybe” Responses: 24% response rate
» “No Happy with Plan” Response: 31% resp rate
11
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12. Expand Next Best Offer-Concept to Event
Based Marketing across In- and Outbound
12
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13. A combination of signals defines an event
Significant
Changes in geo-
transactions and
demographic
purchases, changes
profiles, attitudes,
in transactional RFM
expressed
preferences…… Descriptive Transactional
Signals Signals
Contact External
Related Events
Signals
Complaints, enquiries, Competitive product
registrations, on-line launches, price
visits, marketing, forum changes, interest
involvement……. rate changes……
13
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14. Klassifikation bedeutsamer Signale
Kontext-
spezifische
Ereignisse
Wertpotential
Produkt-
bezogene
Ereignisse
Kunden-
bezogene
Ereignisse
Aktuelle Plötzliche
Rabattierung Nutzung anderer Komplexität
eines Produktes Filialen
Erstmalige
Geburtstag Geburt eines Suche im E-Shop
Kindes nach „Milch“
Wechsel des Verhältnismäßig
Arbeitsortes geringe Online-Meldung
Frequenz
Bestellung eines eines Umzugs
Newsletters
Ungewöhnlich
viele Bestellungen Produktlancierung Relativ hoher
online Ausgabebetrag
14
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15. Kontextspezifische Ereignisse
Transaktionsverhalten der Kunden für gezielte Ansprache
nutzen
Kundenindividuelles Verhaltens- Kündigung
Wert der Transaktion
normales Verhaltensmuster änderung
„Window of
Opportunity“
Zeit
Überweisung (Lohn/Gehalt) Auszahlung (eigener Geldautomat)
Überweisung (Geldausgang) Auszahlung (fremder Geldautomat)
15
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16. Case Study: US Bank
 US$223 billion (assets)
 6th largest in the United States (as of June 30, 2008)
 14 million customers
 16 million transactions-daily
 20,000 bankers
16
Copyright © 2010, SAS Institute Inc. All rights reserved.  193,000 banker leads/month

17. Signals & events generating
automated leads
More proactive with analytically based
event triggers
• Immediately alert branch bankers to up sell or
retention opportunities Deliver 193,000 leads and alerts to
• When a customer's balance significantly increases bankers every month.
• When high-value customers are at risk for attrition,
shown by significant withdrawals or declining
balances
17
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18. Trigger-Leads Drive a Third of
Revenue Gains
Source of Revenue
Reactive
Marketing
(customer
service
suggestions)
17%
Banker Alert
Relationship Marketing 32%
23%
Targeted Marketing
(outbound)
28%
18
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19. Customer Value Up 144%*
•Predicted an increase of Incremental Revenue Forecast
$265 million in incremental
revenue over a five-year
period
Dollars in Millions
•Currently running about 15
percent ahead of
projections
•In the first month,
improved lead distribution
saw branch credit card 2004 2005 2006 2007 2008 2009 2010
sales increase by more
than 400 percent
"We knew we'd see lift, but the magnitude was stunning."
Rich Martino, Senior Vice President, Market Information and Research
* Results are measured based on incremental gains
19
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20. Hmmm…, how to exploit signals and events
 SAS will help you catch and trap the signals
 SAS will enable you to:
 Understand how signals combine to form events
 Understand which events are significant and
important
 Understand how best to react to each event for each
type of customer
 SAS will work with you to develop Event Based
Marketing capability in your company, enabling you to
react insightfully to events to deliver the right offer at
the right time, including in real time
 SAS will fuel your sales and marketing strategy!
20
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21. Next Steps – Bringing this to reality
 Business Case:
 An agreed calculation of the
financial impact and an
understanding of what’s involved Discovery
Workshop
 Event Discovery Workshop:
 A facilitated and structured Q&A
discussion to understand your Business
business drivers and where Case
potential exist
 Pilot Project: Pilot Project
 Start implementing first set of
Business Rules and Events and
iteratively increase number and
complexity
21
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22. Take aways
 Nutzen Sie das Next Best Offer Konzept,
in dem Sie das für den jeweiligen Kunden
optimale Offering berechnen.
 Erweitern Sie das Inbound Konzept auf die
gesamten Marketing Aktivitäten und setzen
Sie dies mit Event Based Marketing um.
 Die Kombination von Signalen führt zu
aussagekräftigen Events, die für Kunden-
Treatments relevant sind.
 SAS hilft Ihnen bei der Einführung und
bietet mit der integrierten SAS Marketing
Automation Lösung das Framework dazu.
 Starten Sie jetzt, denn Ihre Kunden hören
nicht mehr hin!
22
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23. Vielen Dank für Ihre Aufmerksamkeit!
Gespannt auf Ihr Feedback:
Robert Schumacher
Customer Intelligence Solutions Manager, SAS Switzerland
robert.schumacher@sch.sas.com
Copyright © 2010 SAS Institute Inc. All rights reserved.