How business can unlock value from its customer data. Provides examples of customer acquisition, customer retention, using behavioural analysis, customer segmentation and mapping technologies

1. Data2dollars How business can unlock value from it’s data www.symphony3.com www.symphony3.com 1

3. The Situation

4. The Solution, how it works and what it changes

5. Case Studies

6. Next Stepswww.symphony3.com

7. Have you ever felt like this? 50% of my ad budget is wasted, I just don’t know which 50% My business is a mess of silos of unconnected data I can’t get unique customer profiles If I need access to data for a marketing decision, I have to wait in line for an IT report I send the same direct mail to all of my customers External Data is never taken into consideration I have to use assumptions to drive my analysis I need to know that the right customers are available in the new market My factory sells products to major retailers, but I have no idea what they do with it I don’t understand what type of people my previous buyers were www.symphony3.com

9. IT is seen as a cost but data represents untapped business value.

10. Typically, databases are only used to measure $ historically – sales, revenue and profit.

11. Databases that work can also help business to:

12. Attract new customers

13. Retain existing customers

14. Identify opportunities for them to spend more

15. Develop existing customer relationships

16. …… and thus generate dollars www.symphony3.com

17. Dollars (Attract– Retain – Grow Customers) Customer Communications Knowledge Data The Data to Dollars Model www.symphony3.com

18. Solution: The IT Solution Single Customer View Desktop Applications (All Desktops anywhere) Office Document Management Email Specific Business Applications Analysis Financial System Sales Tracking Product Servicing Warranty System Web Site Databases FINANCIAL DATABASE SALES DATABASE CUSTOMER DATABASE WARRANTY CLAIMS SERVICING INFORMATION CUSTOMER ENQUIRIES EXTERNAL DATA www.symphony3.com

19. The Typical Business Environment Dollars Retain Customers Acquire Customers Develop Customers Grow Retain Attract Customer Touches Web Site Call Centre Sales Force Service Centre Marketing -- Sales – Service to Repurchase – Upgrade -- Depart Knowledge Market Knowledge Customer Segment& Profiles Customer Behaviour Customer Relationship History Data Finance System Sales Leads External Industry Data www.symphony3.com

20. The Goal Dollars Higher - Leads, Conversion Rate, Average Sale Value, Margin, Transactions, Lifetime Value, Referrals Retain Customers Acquire Customers Develop Customers Grow Retain Attract Customer Touches Web Site Call Centre Sales Force Service Centre Give the customers that YOU want the experience that THEY demand Marketing -- Sales – Service to Repurchase – Upgrade -- Depart Knowledge Market Knowledge Customer Segment& Profiles Customer Behaviour Customer Relationship History Ensure the RELEVANT KNOWLEDGE is given to the RELEVANT PEOPLE in the organisation Data Finance System Sales Leads External Industry Data Transform your existing data into a single view of the customer www.symphony3.com

21. How it Works Dollars Strategic sales programmes designed and built around preferred customer buying process – time, place, opportunity! Retain Customers Acquire Customers Develop Customers Grow Retain Attract Customer Touches Customer insights provided on desktop viewer power superior decisions & effective customer communication Web Site Call Centre Sales Force Service Centre Marketing -- Sales – Service to Repurchase – Upgrade -- Depart Knowledge Market Knowledge Customer Segment& Profiles Customer Behaviour Customer Relationship History Delivery of customer insights in a Simple Desktop Viewer Analysis of unified database including external data Data Finance System Sales Leads External Industry Data Customer Database www.symphony3.com

24. Demographic information was analysed to identify the number and location of ideal customers in the franchise area

25. This was compared with the number and location of ideal customers in other franchise areas

26. Analysis of this information provided compelling evidence as to the likely turnover of a franchise in the chosen franchise area

27. Further analysis of the data, using models such as 8 and 10 minute drive time analysis, identified the most appropriate location for the franchise in the franchise area The Result The funding agency minimised its lending risk, the franchisee received the funding and opened the franchise. The franchisee chose the most attractive store location based on the findings of the report and was able to maximise its marketing spend by limiting mail drops to households who fitted the ideal customer profile www.symphony3.com

29. Fundraising a major revenue stream

31. The relationship between donors and service recipients or their contacts can’t be established

32. Change of detail in one system cannot be updated in the other systems

33. The information cannot be used to understand the customer base betterwww.symphony3.com

35. Provided a simple search screen for the new database to find where the same or related clients and their contacts exist in the various existing databases.

36. Used the results to clean/correct the existing poor data entry practices. (i.e. addresses of “As above”)

37. Mapped the household locations of the whole community against external data like Census to segment and understand the client base and growth potential

38. Used this to more effectively communicate with existing and potential clients/donors.www.symphony3.com

40. Single club database of over 500,000 customers receiving direct mail regularly

41. Provide a range of different products that suit different stages of life

43. Specifically households with babies vs. teenagers not segmented

44. The database not used to help the organisation better understand their customerswww.symphony3.com

46. Outcomes used to predict who would respond to a direct marketing piece

47. The potential annual savings of not writing to those who wouldn’t respond was $1 per club member

48. Segmentation tested against the complete mail out and found to have high accuracy

49. By comparing RFM analysis outcomes and running test communication pieces it is possible to make communication highly effective and relevant to the customer by both understanding what type of person they are and where they are in their spending cycle

50. People with changing needs identified and communication adjusted accordingly

51. The results used to analyse the profitability of each of 200 houses across Victoria

52. The spend compared to total sector spend per 200 houses to allow competitor analysis and better understand market penetration

53. The profit per communication piece per 200 houses was calculated to fine tune general mail drops and growth areas for NEW customerswww.symphony3.com

55. Many of the larger stores hold no stock and make few sales, but smaller stores of the same brand have high stock/high sales levels

56. The only information the company has is through the receipts in their financial system

58. No understanding of the market penetration in different geographical areas and thus the potential to grow the market

59. No way of knowing how many potential smaller retailers might sell the product

60. No sales forecasts to give new potential market channelswww.symphony3.com

62. External data obtained to show the total spend on renovations and new houses in each area

63. A market share was calculated for each major part of Australia

64. The top 25% of sales regions were identified

65. Modeling showed that if the top 25% market penetration was repeated for the rest of Australia then sales would triple.

66. Lists of all potential retailers were obtained and put against existing sales

67. Information used to work out different distribution strategies for different parts of Australiawww.symphony3.com

69. Each display house has its own database and sales function

71. Potential buyers who visit two display homes are in two parallel sales processes

72. No strategy to directly target potential buyers

73. No way of separating dreamers from buyers

74. No understanding of the sales potential in different geographical areaswww.symphony3.com

76. The buyers and visitors database was mapped to understand where they come from

77. The database was segmented into different household profiles and compared to the general population. One of the identified segments was the “Dreamers”

78. Sophisticated modeling software was used to rank each group of 200 houses across Sydney from 1 to 10 by their likelihood to visit a display home

79. The likelihood of each type of visitor to buy was checked

80. The different types of buyers for different estates was modeled

81. The results were tested against actual buyers and visitors for the following 3 months

82. The reliability of the model was:

83. 38% of the visitors came from the top 10% of the houses

84. 58% came from the top 20% of ranked houses

85. 83% came from the top 50% of the houses

86. This virtually eliminated half the population as not being potential buyers and identified a group four times more likely to buy

87. This information is being used to both better understand the potential buyer and develop direct marketing strategieswww.symphony3.com

88. WHICH HOUSES ARE PROFITABLE TO COMMUNICATE WITH ?? www.symphony3.com

89. Sales per CCD (200 hundred houses) www.symphony3.com

90. WHERE DO PEOPLE SHOP ?? www.symphony3.com

91. Survey respondents by segment www.symphony3.com

92. Segments by location www.symphony3.com

94. The last four are in addition to most “IT” projects.www.symphony3.com

96. We undertake all phases of the system build in parallel.

97. No silos

98. Outcomes are demonstrated and tangible benefits delivered very early in the project.

99. No threat to existing systems

100. co-ordinatation of systems to deliver the outcomes.

101. minimisesorganisational change.

102. Rapid prototyping checks all data, standards and organisational issues that may affect the project, as well as the very early demonstration of results

103. The system can subsequently operate as a bureau service or as an in-house systemwww.symphony3.com

105. The steps required to obtain the benefits

107. Put into a temporary analysis database

108. Run some basic analysis to demonstrate potential outcomesEvaluate business value and agree to proceed to full project. www.symphony3.com