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Big Data & Big Data Analytics
 Experiences in building a 360°Integrated Customer View


Pietro Leo
Executive Architect
Member of IBM Academy of Technology Leadership Team




 @pieroleo   www.linkedin.com/in/pieroleo
                                                      © 2012 IBM Corporation
IBM Institute for Business Value



What are the main Factors impacting marketing & CMO?
                                                                                                                    Big Data related
                                                                                                                    dimensions!
         Marketing Priority Matrix                                                    1    Data explosion
                 Underpreparedness
                 Percent of CMOs reporting
                                                                                      2    Social media
                 underpreparedness
                                                     1                                3    Growth of channel and device choices
        70
                                                                                      4    Shifting consumer demographics
                                                                   2
                                                                            3
                                                                                      5    Financial constraints
                                                     4                                6    Decreasing brand loyalty
        60
                                              5                                       7    Growth market opportunities
Mean                                                      6
                                                                                      8    ROI accountability
                               10             7               8                 9
                          11
                                                                                      9    Customer collaboration and influence
        50                                     12                                     10   Privacy considerations
                                         13
                                                                                      11   Global outsourcing
                                                          Factors impacting
                                                          marketing                   12   Regulatory considerations
        40                                                Percent of CMOs selecting
                                                          as “Top five factors”       13   Corporate transparency
             0                      20               40                60
                                              Mean                                                                    IBM
    @pieroleo          www.linkedin.com/in/pieroleo
2                                                                                                                      © 2012 IBM Corporation
IBM Institute for Business Value


A new paradigm targeting a 360°Integrated Customer View in order
to leverage the Customer Empowerment

                                                   The new profession paints a predictive
                                                   picture of each customer by harnessing
                                                   data on a massive scale

                                                   • Instruments all key touch points to gather
                                                     the right data about each customer.
                                                   • Connects social media data, transaction data
                                                     and other information to paint a more vivid
                                                     picture of each customer.
                                                   • Runs the right analytics at the right time on
                                                     the right customer to generate new ideas
                                                     about whom to serve and how best to serve
                                                     that person.
                                                   • Generates insights that are predictive,
                                                     not just historical.
                                                   • Builds capabilities to do this on a massive
                                                     scale.

    @pieroleo       www.linkedin.com/in/pieroleo
3                                                                                    © 2012 IBM Corporation
How Big Data Analytics can help?
Create an integrated view of Customers Data & Content from ALL enterprise
contact points including internal and external sources... social business!


                                                  Enterprise Contact Points
Customer
                      Branch office          Call Center       Self Service         IVR           Social




                                               Agent               Web

                                                      Unstructured                    Structured
                         Structured
 Data & Content          Agent Data
                                                  Call logs, Transcripts          Customer/Product
                                                    Emails, Surveys                Transaction Data


       Big Data                                                                                               Enterprise
       Business           Integrate and Analyze Structured and Unstructured Data                               products
       Analytics                                                                                             and services

        Insights       Customer Intelligence               Agent Performance    Dissatisfaction Drivers
    Distribution       Process Understanding               Social Drivers       Sales Drivers
    & Utilization

  @pieroleo   www.linkedin.com/in/pieroleo
                                                                                                             © 2012 IBM Corporation
IBM Institute for Business Value


A new paradigm targeting a 360°Integrated Customer View in order
to leverage the Customer Empowerment




                                                          Customer Virtual
                                                           Ex2. Rebuild


                                                            measuring
                                                             marketing
                                                             campaign
                                                             Profiles &
                                                     Ex1. Collect customers
                                                   longitudinal point of views
                                                    And correlete them with
                                                          internal data



    @pieroleo       www.linkedin.com/in/pieroleo
5                                                                      © 2012 IBM Corporation
Example 1: Big Data Analytics to collect Customer longitudinal point of
views from Web 2.0 and correlate them with internal data
Business challenge
Social media is considered a new and relevant source to understand the consumer
and improve service levels; measure its own as well as the competition’s brands and
                                                                                                              “Big Data is a great
products; and compare results with traditional TV research data for better market
awareness. Particularly, the company needed a social media analytics solution that                             opportunity for TV
could: accurately measure the echo on Social Media about the efficacy of its products                          innovation in the next
and campaigns; provide insight into competitors;                                                               years. TV viewing is
Solution                                                                                                       transforming into a
                                                                                                               multiplatform and
IBM helped the client to analyze unstructured data across a number of social media
channels and assess the company’s corporate brands, with respect to its competitors,                           participative experience:
as well as to discover and statistical measure signals and alerts about viewer                                 the better we know and
preferences and experiences about TV contents. Specifically, among others, included:                           understand our viewers,
detect hot words and design attitudinal indicators about company products and services                         the better we can serve
discover new trends and hot words on Social Media in order to compare them and weight them with respect        them." – Valerio Motti,
to internal information streams                                                                                Head of Marketing
analyze findings and evaluate their significance with respect to business priorities                           Innovation, Mediaset
correlate customer attitudinal attributes results of unstructured data analysis with internal data             S.p.A.
Benefits
        • Measure as well as discover a number of signals referred to TV viewers that were expressed
        in web 2.0 comments and referred to several kind of TV contents and TV ads campaigns.
        • A number of interesting correlations were discovered and evaluated among those signals
        and with respect to internal customer loyalty parameters that will contribute refine the company
        marketing strategy.



    @pieroleo        www.linkedin.com/in/pieroleo
6                                                                                              Nov 14, 2012                 © 2012 IBM Corporation
Example 1: Big Data Analytics to collect Customer longitudinal
point of views from Web 2.0 and correlate them with internal data
         Information Sources                          Working Environment                   OUTPUT

                                                   STRONG              WEAK
                                                   SIGNALS            SIGNALS



                        Content
                        Provider /
                        Aggregators



                                                    Social Intelligence Workplace   Regular Reporting & Monitoring




                                                          Model taxonomy
                                                         Hotwords Taxonomy
       RSS
                 Sorgenti
                FeedRSS
                                                   TAXONOMIES         RELTATIONS
                                                   REPORTING           SENTIMENT          Specialized
                                                   ADVANCED SEARCH:    CONCEPT            Analysis &
                                                                       DISCOVERY          Studies
                                                   DISCOVERY and
                                                   ANLYSYS OF          ALERTS
                                                   INFLUENCERS
    @pieroleo       www.linkedin.com/in/pieroleo

7
                                                                                             © 2012 IBM Corporation
360-degree Consumer Profiles from Social Media
Personal Attributes
 Personal Attributes
• Identifiers: name, address, age,   gender,
  • Identifiers:
occupation… name, address, age, gender,
• occupation…
  Interests: sports, pets, cuisine…
                                                                                  Timely Insights
                                                                                   Timely Insights
                                                                                  • Intent to buy various products
• • Interests:Status: marital, parental
  Life Cycle sports, pets, cuisine…
  • Life Cycle Status: marital, parental                                          • • Intent to buy various products
                                                                                    Current Location
                                                                                  • • Current Location
                                                                                    Sentiment on products, services, campaigns
                                                                                  • • Sentiment on products, services, campaigns
                                                                                    Incidents damaging reputation
                                                                                  • • Incidentssatisfaction/attrition
                                                                                    Customer damaging reputation
                                                                                    • Customer satisfaction/attrition
Life Events
 Life Events
• Life-changing events: relocation, having a
  • Life-changing events: relocation, having a
baby, getting married, getting divorced, buying
a baby, getting married, getting divorced, buying
  house…
  a house…
                                                                                  Products Interests
                                                                                   Products Interests
                                                                                  • Personal preferences of products
                                                                                  • • Personal preferences of products
                                                                                    Product Purchase history
Relationships                                                                     • • Product Purchase historyservices
                                                                                    Suggestions on products &
 Relationships                                                                      • Suggestions on products & services
• Personal relationships: family, friends and
  • Personal
roommates…relationships: family, friends and
• roommates…
   Business relationships: co-workers and
  • Business relationships: co-workers and
work/interest network…
  work/interest network…



Monetizable intent to buy products                            Life Events
I need a new digital camera for my food pictures, any         College: Off to Stanford for my MBA! Bbye chicago!
recommendations around 300? my food pictures, any
  I need a new digital camera for                              College: Off to Stanford for my MBA! Bbye chicago!
  recommendations around 300?
                                                                   Looks like we'll be moving to New Orleans sooner than I thought.
What should I buy?? A mini laptop with Windows 7 OR a Apple         Looks like we'll be moving to New Orleans sooner than I thought.
MacBook!??! I buy?? A mini laptop with Windows 7 OR a Apple
 What should
 MacBook!??!                                                  Intent to buy a house
                                                              I'm thinking about buying a home in Buckingham Estates per a
Location announcements                                          I'm thinking about buying a home in Buckingham Estates per a
                                                              recommendation. Anyone have advice on that area? #atx #austinrealestate
                                                                recommendation. Anyone have advice on that area? #atx #austinrealestate
                                                              #austin
  I'm at Starbucks Parque Tezontle http://4sq.com/fYReSj        #austin
    I'm at Starbucks Parque Tezontle http://4sq.com/fYReSj
   @pieroleo         www.linkedin.com/in/pieroleo
                                                                                                                     © 2012 IBM Corporation
Example 2: Big Data Analytics to expand knowledge about customer profiles and
measuring marketing campaign
• Analysis of social media messages for large Media and Entertainment company to determine reaction
to movie commercials aired during the SuperBowl
• Insights based on 30M+ social media consumer profiles created by analyzing over a Billion messages
• Real-time evolution of insights correlated with the airing of the commercial

Key Business Questions:                                                                                                                     Consumer demographics by movie
                                                                                            Battleship
How many people are talking about the film ?
                                                                              Gender                              Female                                                       Male

• Intention to see the movie, Impact of SuperBowl
commercial                                                             Top 10 Markets


Who are they ?                                                                            The Dictator

• Demographics, Influencers, avid movie goers                                 Gender                              Female                                                       Male



                                                                       Top 10 Markets
What is the reaction ?
• Categorized sentiment (plot, characters, …)                                 Gender
                                                                                           Act of Valor
                                                                                                        Female                                                          Male

• Comparison with competitive movies                                   Top 10 Markets



                                                                                                  10%            20%            30%         40%        50%        60%          70%      80%    90%
                           Competitive Intelligence
                                                                             Comparing feedback by important microsegment (avid movie-
                                                        Buzz Amongst Avid Movie-Goers Jan -
                                                                                                      goers) Amongst Avid Movie-Goers During
                                                                                                           Buzz
                                                                               Feb                                                                                        Super Bowl


                                                         Think Like a Man
                                                Act of Valor                     21 Jump Street
                                                                                                                                                      The Lorax          The Dictator            Project X
                                                                                                                    The Lorax
                                                                                                                                              Act of Valor                                       John Carter
                                                                                                                    Project X
                                                                                                                                                                                                 Battleship
                                              The                                                                   John Carter
                                                                                                                                                                                                 Ghost Rider
                                          Avengers
                                                                                                                    The Dictator
                                                                                                                                                                                                 21 Jump Street
                                                                                                                    The Dark Knight Rises                                                        The Dark Knight Rises
                                                                                                                    Battleship                                                                   G.I. Joe
   @pieroleo     www.linkedin.com/in/pieroleo                                                                       Spider-man                The Avengers                                       Spider-man
                                                                                                                                                                                        © 2012 IBM Corporation
                                                               Ghost Rider                                          G.I. Joe
IBM SDA: Social-media Based Micro-segmentation and Real-time Correlation

                             InfoSphere Streams                       Online Flow: Data-in-motion analysis

                 Social                                                       Entity            Predictive
                 Media         Data Ingest          Text Analytics:        Integration:         Analytics:             Timely
                  Data          & prep.             Timely Insights           Profile             Action
                                                                            Resolution                                Decisions
                                                                                              Determination




                    Text               Entity             Social Media           Entity                         Predictive
Social Media                                               Social Media                           Customer
                                                                                                   Customer                        Customer
 Social Media      Analytics         Integration                              Integration                        Analytics
                                                           Consumer
                                                            Consumer                              & Prospect
                                                                                                   & Prospect                       Models
    Data
     Data
                                                            Profiles
                                                             Profiles                              profiles
                                                                                                    profiles

      InfoSphere BigInsights
                                                                       Consumer
                                                                        Consumer        Customer
                                                                                         Customer
       Offline Flow: Data-at-rest analysis                               Lists
                                                                          Lists         Database
                                                                                         Database


   Large-scale data-at-rest analysis using InfoSphere BigInsights
   Large-scale data-at-rest analysis using InfoSphere BigInsights
   Large-scale data-in-motion analysis using InfoSphere Streams
   Large-scale data-in-motion analysis using InfoSphere Streams
   Advanced text analysis, entity integration, and predictive modeling using common analytics
   Advanced text analysis, entity integration, and predictive modeling using common analytics
    infrastructure across Streams and BigInsights
     infrastructure across Streams and BigInsights
     @pieroleo       www.linkedin.com/in/pieroleo
                                                                                                                       © 2012 IBM Corporation
@pieroleo   www.linkedin.com/in/pieroleo
                                           © 2012 IBM Corporation
Business Models based on connecting Virtual and Real Words: the AMEX model

  A portal that collects special
   offers and discounts from
 retailers and detail about the
customer segment that is target


Marketing segmentation engine
that evaluate customer profiles
 and select the best coupon to
            propose
                                                      American Express
Moble app and connection with                           Smart Offer
      Twitter, Facebook e
 Foursquare to communicate
with the customers and enable
          viral effects




   Just virtual Coupons are managed! Customers
   activate the coupon and receive on montly basis
   on the credit card account the equivalent of the
   coupon discounts after that transactions were
   registred

     @pieroleo     www.linkedin.com/in/pieroleo

  12
                                                                         © 2012 IBM Corporation
Grazie!

                                                                     Pietro Leo
                                                             Executive Architect
                                           Member of IBM Academy of Technology
                                                         @pieroleo   www.linkedin.com/in/pieroleo




@pieroleo   www.linkedin.com/in/pieroleo
                                                                                         © 2012 IBM Corporation

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Big data and customer analytics examples

  • 1. Big Data & Big Data Analytics Experiences in building a 360°Integrated Customer View Pietro Leo Executive Architect Member of IBM Academy of Technology Leadership Team @pieroleo www.linkedin.com/in/pieroleo © 2012 IBM Corporation
  • 2. IBM Institute for Business Value What are the main Factors impacting marketing & CMO? Big Data related dimensions! Marketing Priority Matrix 1 Data explosion Underpreparedness Percent of CMOs reporting 2 Social media underpreparedness 1 3 Growth of channel and device choices 70 4 Shifting consumer demographics 2 3 5 Financial constraints 4 6 Decreasing brand loyalty 60 5 7 Growth market opportunities Mean 6 8 ROI accountability 10 7 8 9 11 9 Customer collaboration and influence 50 12 10 Privacy considerations 13 11 Global outsourcing Factors impacting marketing 12 Regulatory considerations 40 Percent of CMOs selecting as “Top five factors” 13 Corporate transparency 0 20 40 60 Mean IBM @pieroleo www.linkedin.com/in/pieroleo 2 © 2012 IBM Corporation
  • 3. IBM Institute for Business Value A new paradigm targeting a 360°Integrated Customer View in order to leverage the Customer Empowerment The new profession paints a predictive picture of each customer by harnessing data on a massive scale • Instruments all key touch points to gather the right data about each customer. • Connects social media data, transaction data and other information to paint a more vivid picture of each customer. • Runs the right analytics at the right time on the right customer to generate new ideas about whom to serve and how best to serve that person. • Generates insights that are predictive, not just historical. • Builds capabilities to do this on a massive scale. @pieroleo www.linkedin.com/in/pieroleo 3 © 2012 IBM Corporation
  • 4. How Big Data Analytics can help? Create an integrated view of Customers Data & Content from ALL enterprise contact points including internal and external sources... social business! Enterprise Contact Points Customer Branch office Call Center Self Service IVR Social Agent Web Unstructured Structured Structured Data & Content Agent Data Call logs, Transcripts Customer/Product Emails, Surveys Transaction Data Big Data Enterprise Business Integrate and Analyze Structured and Unstructured Data products Analytics and services Insights  Customer Intelligence  Agent Performance  Dissatisfaction Drivers Distribution  Process Understanding  Social Drivers  Sales Drivers & Utilization @pieroleo www.linkedin.com/in/pieroleo © 2012 IBM Corporation
  • 5. IBM Institute for Business Value A new paradigm targeting a 360°Integrated Customer View in order to leverage the Customer Empowerment Customer Virtual Ex2. Rebuild measuring marketing campaign Profiles & Ex1. Collect customers longitudinal point of views And correlete them with internal data @pieroleo www.linkedin.com/in/pieroleo 5 © 2012 IBM Corporation
  • 6. Example 1: Big Data Analytics to collect Customer longitudinal point of views from Web 2.0 and correlate them with internal data Business challenge Social media is considered a new and relevant source to understand the consumer and improve service levels; measure its own as well as the competition’s brands and “Big Data is a great products; and compare results with traditional TV research data for better market awareness. Particularly, the company needed a social media analytics solution that opportunity for TV could: accurately measure the echo on Social Media about the efficacy of its products innovation in the next and campaigns; provide insight into competitors; years. TV viewing is Solution transforming into a multiplatform and IBM helped the client to analyze unstructured data across a number of social media channels and assess the company’s corporate brands, with respect to its competitors, participative experience: as well as to discover and statistical measure signals and alerts about viewer the better we know and preferences and experiences about TV contents. Specifically, among others, included: understand our viewers, detect hot words and design attitudinal indicators about company products and services the better we can serve discover new trends and hot words on Social Media in order to compare them and weight them with respect them." – Valerio Motti, to internal information streams Head of Marketing analyze findings and evaluate their significance with respect to business priorities Innovation, Mediaset correlate customer attitudinal attributes results of unstructured data analysis with internal data S.p.A. Benefits • Measure as well as discover a number of signals referred to TV viewers that were expressed in web 2.0 comments and referred to several kind of TV contents and TV ads campaigns. • A number of interesting correlations were discovered and evaluated among those signals and with respect to internal customer loyalty parameters that will contribute refine the company marketing strategy. @pieroleo www.linkedin.com/in/pieroleo 6 Nov 14, 2012 © 2012 IBM Corporation
  • 7. Example 1: Big Data Analytics to collect Customer longitudinal point of views from Web 2.0 and correlate them with internal data Information Sources Working Environment OUTPUT STRONG WEAK SIGNALS SIGNALS Content Provider / Aggregators Social Intelligence Workplace Regular Reporting & Monitoring Model taxonomy Hotwords Taxonomy RSS Sorgenti FeedRSS TAXONOMIES RELTATIONS REPORTING SENTIMENT Specialized ADVANCED SEARCH: CONCEPT Analysis & DISCOVERY Studies DISCOVERY and ANLYSYS OF ALERTS INFLUENCERS @pieroleo www.linkedin.com/in/pieroleo 7 © 2012 IBM Corporation
  • 8. 360-degree Consumer Profiles from Social Media Personal Attributes Personal Attributes • Identifiers: name, address, age, gender, • Identifiers: occupation… name, address, age, gender, • occupation… Interests: sports, pets, cuisine… Timely Insights Timely Insights • Intent to buy various products • • Interests:Status: marital, parental Life Cycle sports, pets, cuisine… • Life Cycle Status: marital, parental • • Intent to buy various products Current Location • • Current Location Sentiment on products, services, campaigns • • Sentiment on products, services, campaigns Incidents damaging reputation • • Incidentssatisfaction/attrition Customer damaging reputation • Customer satisfaction/attrition Life Events Life Events • Life-changing events: relocation, having a • Life-changing events: relocation, having a baby, getting married, getting divorced, buying a baby, getting married, getting divorced, buying house… a house… Products Interests Products Interests • Personal preferences of products • • Personal preferences of products Product Purchase history Relationships • • Product Purchase historyservices Suggestions on products & Relationships • Suggestions on products & services • Personal relationships: family, friends and • Personal roommates…relationships: family, friends and • roommates… Business relationships: co-workers and • Business relationships: co-workers and work/interest network… work/interest network… Monetizable intent to buy products Life Events I need a new digital camera for my food pictures, any College: Off to Stanford for my MBA! Bbye chicago! recommendations around 300? my food pictures, any I need a new digital camera for College: Off to Stanford for my MBA! Bbye chicago! recommendations around 300? Looks like we'll be moving to New Orleans sooner than I thought. What should I buy?? A mini laptop with Windows 7 OR a Apple Looks like we'll be moving to New Orleans sooner than I thought. MacBook!??! I buy?? A mini laptop with Windows 7 OR a Apple What should MacBook!??! Intent to buy a house I'm thinking about buying a home in Buckingham Estates per a Location announcements I'm thinking about buying a home in Buckingham Estates per a recommendation. Anyone have advice on that area? #atx #austinrealestate recommendation. Anyone have advice on that area? #atx #austinrealestate #austin I'm at Starbucks Parque Tezontle http://4sq.com/fYReSj #austin I'm at Starbucks Parque Tezontle http://4sq.com/fYReSj @pieroleo www.linkedin.com/in/pieroleo © 2012 IBM Corporation
  • 9. Example 2: Big Data Analytics to expand knowledge about customer profiles and measuring marketing campaign • Analysis of social media messages for large Media and Entertainment company to determine reaction to movie commercials aired during the SuperBowl • Insights based on 30M+ social media consumer profiles created by analyzing over a Billion messages • Real-time evolution of insights correlated with the airing of the commercial Key Business Questions: Consumer demographics by movie Battleship How many people are talking about the film ? Gender Female Male • Intention to see the movie, Impact of SuperBowl commercial Top 10 Markets Who are they ? The Dictator • Demographics, Influencers, avid movie goers Gender Female Male Top 10 Markets What is the reaction ? • Categorized sentiment (plot, characters, …) Gender Act of Valor Female Male • Comparison with competitive movies Top 10 Markets 10% 20% 30% 40% 50% 60% 70% 80% 90% Competitive Intelligence Comparing feedback by important microsegment (avid movie- Buzz Amongst Avid Movie-Goers Jan - goers) Amongst Avid Movie-Goers During Buzz Feb Super Bowl Think Like a Man Act of Valor 21 Jump Street The Lorax The Dictator Project X The Lorax Act of Valor John Carter Project X Battleship The John Carter Ghost Rider Avengers The Dictator 21 Jump Street The Dark Knight Rises The Dark Knight Rises Battleship G.I. Joe @pieroleo www.linkedin.com/in/pieroleo Spider-man The Avengers Spider-man © 2012 IBM Corporation Ghost Rider G.I. Joe
  • 10. IBM SDA: Social-media Based Micro-segmentation and Real-time Correlation InfoSphere Streams Online Flow: Data-in-motion analysis Social Entity Predictive Media Data Ingest Text Analytics: Integration: Analytics: Timely Data & prep. Timely Insights Profile Action Resolution Decisions Determination Text Entity Social Media Entity Predictive Social Media Social Media Customer Customer Customer Social Media Analytics Integration Integration Analytics Consumer Consumer & Prospect & Prospect Models Data Data Profiles Profiles profiles profiles InfoSphere BigInsights Consumer Consumer Customer Customer Offline Flow: Data-at-rest analysis Lists Lists Database Database  Large-scale data-at-rest analysis using InfoSphere BigInsights  Large-scale data-at-rest analysis using InfoSphere BigInsights  Large-scale data-in-motion analysis using InfoSphere Streams  Large-scale data-in-motion analysis using InfoSphere Streams  Advanced text analysis, entity integration, and predictive modeling using common analytics  Advanced text analysis, entity integration, and predictive modeling using common analytics infrastructure across Streams and BigInsights infrastructure across Streams and BigInsights @pieroleo www.linkedin.com/in/pieroleo © 2012 IBM Corporation
  • 11. @pieroleo www.linkedin.com/in/pieroleo © 2012 IBM Corporation
  • 12. Business Models based on connecting Virtual and Real Words: the AMEX model A portal that collects special offers and discounts from retailers and detail about the customer segment that is target Marketing segmentation engine that evaluate customer profiles and select the best coupon to propose American Express Moble app and connection with Smart Offer Twitter, Facebook e Foursquare to communicate with the customers and enable viral effects Just virtual Coupons are managed! Customers activate the coupon and receive on montly basis on the credit card account the equivalent of the coupon discounts after that transactions were registred @pieroleo www.linkedin.com/in/pieroleo 12 © 2012 IBM Corporation
  • 13. Grazie! Pietro Leo Executive Architect Member of IBM Academy of Technology @pieroleo www.linkedin.com/in/pieroleo @pieroleo www.linkedin.com/in/pieroleo © 2012 IBM Corporation