1、TABLE OF CONTENTSFOREWORD 4KEY FINDINGS 6ABOUT THE RESEARCH 6CUSTOMER DATA ANALYTICS 7MARKETING ATTRIBUTION CAPABILITY 20CUSTOMER DATA AND GDPR 25UNDERSTANDING EXTERNAL INFLUENCES 27HARNESSING ARTIFICIAL INTELLIGENCE 30SAS VIEWPOINT 33ABOUT SAS 34REFERENCES 35FOREWORDResearch by Gartner supports thi

2、s, suggesting 89 per cent of marketers will primarily compete on customer experience instead of price in the coming years.1 At the same time, the increased use of social media and mobile devices, combined with the burgeoning Internet of Things, is resulting in higher volumes of increasingly complex

3、data being generated. For an organisation to understand their customers and deliver relevant and personalised experiences, they need to consider the best way to analyse all of this data, extract useful insights and action those insights in a timely manner, even in real time where appropriate. Those

4、organisations that can achieve this will realise significant competitive advantage. McKinsey reveals that organisations using analytics to leverage customer behavioural insights outperform peers by 85 per cent in sales growth, and more than 25 per cent in gross margin.2And there is evidence that man

5、y organisations are recognising the competitive edge that analytics can deliver. According to research by Gartner, the biggest share of marketing budgets 9.2 per cent went to marketing analytics in 2017, indicating that customer insight is a priority for Chief Marketing Officers (CMOs).3There is cle

6、arly a drive for improved customer experience and more efficient use of resources through use of analytics, but there remains a broad spectrum of analytical capability from organisations that are just starting out using analytics to segment their customer base, to leaders that are deploying predicti

7、ve analytics and machine learning in real time. We were interested to find out more about where organisations are on this analytical spectrum and, in particular, where they think they are. We also investigated organisations progress in the adoption of Artificial Intelligence (AI), given the amount o

8、f conversation and interest around this technology.What is clear is that while many organisations are already using analytics to enhance decision-making, there is significant opportunity to improve. Many organisations are still targeting broad audiences and using analytics to report on the past rath

9、er than for predict the future; very few are able to capture relevant data in a timely manner and fewer still have any capacity to apply analytics to the data in real time. The net result is that they are making decisions based on their customers digital shadows, working within an echo chamber.This

10、means they are making decisions to and about customers based on an incomplete view of those customers.Many organisations are not as far along the analytical maturity curve as they would like to be when it comes to delivering relevant customer experiences. Three key business challenges are most often

11、 cited within the context of customer data and analytics: Tiffany CarpenterHead of Customer IntelligenceSAS UK & IrelandOver the last few years weve seen a major shift from a product-based economy to an experience-based economy. Customers increasingly want to do business with organisations on their

12、own terms. They demand fast, easy access to information and expect to receive relevant and personalised experiences that consider all the data an organisation holds on them, regardless of where and when they choose to engage.451: Incomplete customer view Ability to synchronise varied data sources (c

13、hannels, media, interactions, online/offline, location, point-of-sale, etc.) for a holistic view of the customer.2: Delivering insights at speed The traditional approach to analytics brings with it too much latency in the process. Analytics and decisioning processes need to move closer to the source

14、s of data to deliver insights at the speed of the customer.3: Actioning insights in real time Delivering optimal decisions into the customer interaction in real time to deliver better customer experience, greater loyalty and ultimately higher share of wallet.These may seem like big challenges but th

15、e technology to overcome them is already here. So why arent more companies taking advantage of the opportunities from analytics? Many have the appetite to leverage their customer data assets but lack the skills, resources, time and budget to act effectively. Yet we believe many organisations could b

16、e doing more despite these obstacles sometimes their analytical capability is down to the fact they have struggled to get value from analytical projects in the past, undermining their confidence in achieving the desired outcomes. Or they may have a specific analytical need being met (e.g. recommenda

17、tions, attribution, content optimisation) but have not expanded this to other parts of the customer journey.The results of the most advanced insight-driven organisations are impressive: They perform better as the analytical insight shows where they can streamline their processes They have deployed a

18、nalytics closer to the sources of data and the customer interaction to automate and speed up every customer decision They are more profitable as they are able to optimise customer decisions in real time They are operationally more predictable as data insights fuel current and future decisions, keepi

19、ng their finger on the pulse of the market.These advantages make an organisation more shock-resistant and less likely to be surprised by the next economic or technological disruption. From a day-to-day perspective these capabilities result in an enhanced customer experience. And with customer experi

20、ence now recognised as the key differentiator for organisations, improving it is something all businesses should be striving to do.KEY FINDINGSABOUT THE RESEARCHSAS set out to understand how organisations describe their ability to use customer intelligence (CI) and Artificial Intelligence (AI) to pe

21、rsonalise customer interactions, including where real-time context can be used and whether there is a gap between perception and reality when it comes to the level of capability they have in delivering exceptional customer experience.Many think theyre further along the development curve than they ac

22、tually are a quarter describe themselves as transformational yet fewer than half of them (10 per cent) are actually leadersOrganisations are not using all the available data, targeting broad audiences rather than a segment of one and therefore many are casting customers into digital shadowsSAS commi

23、ssioned 3GEM Research & Insights to survey 350 heads of marketing, customer service and experience, digital and data. They were asked about: Information currently collected about customers Ability to segment customers and personalise campaigns based on current and anticipated customer behaviour Anti

24、cipated impact of GDPR on the type of data collected Use of analytics and AI to enhance customer experienceSurvey respondents were split equally across seven customer sectors:This contradicts most organisations claims to be customer firstFew marketers can effectively attribute success to different m

25、arketing channels only six per cent have complete omnichannel measures in place incorporating online and offline dataGovernmentRetailRetail BankingTelecomsInsuranceMediaEnergyThere remains an opportunity for a large proportion of organisations to improve CI capability using analytics and therefore i

26、mprove competitivenessAI is only being used by a small minority (14 per cent) while many plan to implement AI shortly, more than a third will use it to report on the past rather than predict the future67CUSTOMERDATA ANALYTICSOrganisations claim to have leading CI capabilities, but in reality, many d

27、o not meet the criteria to be truly transformationalAdvanced customer analytics reveals insights that enable businesses to predict customer product and channel preferences, likely customer behaviours, expected spend and lifetime value in order to deliver more relevant experiences and improve custome

28、r value. Few would disagree. The real issue is how do you achieve this and are you doing everything you could to achieve it?Many organisations are collecting lots of data but not analysing all of it. Most organisations are using analytics to report on the past rather than to predict future behaviour

29、. So while many companies might claim they do analytics, the reality is often that they only have a partial or blurred view of the customer. The customer may have moved on and have different personal circumstances, along with slightly altered preferences and behaviours. In this situation the organis

30、ation is looking into the customers digital shadow rather than where the customer is positioned right now.The knock-on effects are clear. Any interaction with that customer will be hit-and-miss: you are not interacting with the individual you think you are. By contrast, a clear up-to-date view of ea

31、ch individual customer and real-time context ensures that each customer interaction is effective. We wanted to explore this further and undertook a detailed market study. We asked participants to position their organisations technical ability to use CI to shape the customer experience and marketing

32、campaigns. More than half of those asked (54 per cent) ranked themselves as best in class or higher. The definition of best in class included organisations that optimise offers and suggested actions using analytics, and target customers based on real-time behaviour. To be classed as transformational

33、 in their use of CI, organisations must also have the ability to calculate and arbitrate new offers and decisions in real time, based on real-time content and context (i.e. information captured at the moment of a live customer interaction). A quarter of participants (25 per cent) ranked their compan

34、ies as transformational based on this definition Fig 1.However, when the survey questioned CI capabilities in more depth, participants revealed a gap between their initial claims and the true capabilities they currently have within their organisations. For example, fewer than 10 per cent said they u

35、se online and offline -data in real time to personalise the entire customer experience Fig 2.This highlights that there are only a few leader organisations delivering successful real-time engagement, creating personalised experiences for consumers, driving expectations and changing the dynamics of t

36、he market. There is also a significant proportion of companies being left behind more than a fifth (21 per cent) are not able to personalise customer experience at all. Many companies are unable to use real-time analytics to interact with customers. Nevertheless, they recognise the importance of rea

37、l-time customer engagement. Research conducted by SAS in 2017 found that over half of the UK organisations that took part felt that improved real-time customer engagement could see revenues increase by 10 per cent. One in five expected revenues could jump by as much as 2040 per cent.48055

38、Fig 1: How would you describe your organisations technical abilityto use customer intelligence (CI) to shape campaigns?EmergingDisparate data sources / limited customer personalisation or diferentiation & no integration & no integration channelsStableOfers & suggested actions are pre-determined & ta

39、rgeted at customers based on segments & audience ofers. No integration across channelsTransformationalOfers & suggested actions are optimised using analytics & targeted at customers based on real time behaviour. New ofers & decisions to customers can be calculated & arbitrated in real time based on

40、real time content & contextBest in ClassOfers & suggested actions are optimised using analytics & targeted at customers based on real time behaviour. No ability to calculate a new ofer & change the decision in real time. Integrated omnichannel approach13.4%32.9%28.6%25.1%Avoiding the digital shadows

41、 through personalisationMaking accurate and profitable decisions requires insight into offline and online historical and real-time data to build up a complete, holistic view of the customer. Only then are organisations in a position to provide a truly personalised service.While many companies use on

42、line data to personalise the digital experience, the insight from online data alone does not provide a full picture of the customer. Indeed, looking at what a customer has just clicked on does not tell you much in isolation. For example, a customer of a utility company may click on the website for i

43、nformation about smart meters. Personal-ising the experience, based on this behavioural data alone, might result in promotions to the customer about the bene-fits of signing-up for a smart meter. However, the customer might already have a smart meter and instead be looking for more information about

44、 how it works.Having a more holistic approach that integrates offline data would have revealed this, leading to a much more relevant next best action for that customer. Relying on the online information alone can again lead organisations into the digital shadows focusing on where customers interests

45、 were in the past (acquiring a smart meter) rather than anticipating future requirements (how best to use a smart meter). The upshot is that organisations may be causing irritation and potentially eroding customer loyalty.The survey confirms that the majority of organisations are investing or planni

46、ng to invest in linking offline data to per-sonalise online customer experience more than two-thirds plan to make it happen within the next two years. Fig 39Fig 2: How would you describe your organisations technical abilityto use customer intelligence (CI) to shape campaigns?We cannot personalise th

47、e experimentTo some extent, we personalise the digital experience in real time based on digital segmentation & browsing behaviourWe are able to make the most recent data available from ofine and online channels but not in real timeWe are able to use online and ofine analytics in real time to persona

48、lise the entire experience009.7%19.1%50.3%20.9%Despite most organisations planning to make offline data available, there could be a number of reasons why they are unable to use it today, such as poor data quality or not properly sharing data already collected across the organisation. Arou

49、nd 70 per cent of organisations are typically not collecting meaningful data to personalise digital experiences Fig 4. They are not looking at what products a customer has already bought, not looking at their previous transactions, not using loyalty or CRM data nor any previous engagements. If only

50、30 per cent of organisations are using this type of data to personalise, then a significant majority are not delivering relevant or personalised experiences at all. This is clearly at odds with the fact that over half (54 per cent) think they are best in class or even transformational Fig 1.10051015