1、Putting Data Warehousing,The E Channel,and Marketing/CRM In PerspectiveDr.eDave SchraderDirector,E-Business MarketingEl Segundo,CA 310.524.5039david.schraderncrA Presentation11/12-13/01Prof.CarlsonsMBA ClassesMarginsRevenue Enhance RevenueReduceCostsCostsCustomer IntimacyOperational ExcellenceAssetP
2、roductivityOperationsProductivityProductDifferentiationService DifferentiationEffectiveness&AgilityEfficiency&CapacityVisionThe Profit WedgeWhy E?The E channel is transforming each of the parts of this pictureE is everywhereThe E channel can help drive revenues as well as reduce costs.E can drive bo
3、th effectiveness and efficiency.11/12-13/012Goal:The Extended EnterpriseYour CompanyRelationships with Your CustomersRelationships with Your Partners Relationships with Your EmployeesWebWebWebWeb-EnabledB2CB2BB2E11/12-13/013360 Degree View of Customers Must Include the Web ChannelsCan you take advan
4、tage of these clues to build better relationships with customers?How can you do this over the web?Customers Provide Many Clues for you:Purchases-offline and online Browsing activity at your website Calls to your Call Center Responses to your Marketing campaigns Survey responses E-Mail requests,wirel
5、ess11/12-13/014STAGE AWebPresenceOne WebSiteFitsAll CustomersSTAGE BCustomerWeb ActivityCapture/Analyze Web InteractionsDialogue-Oriented:PersonalizationSTAGE ECustomer-EnterpriseRelationshipand LoyaltyConsistent Multi-ChannelPersonalizationsSTAGE CAdaptive PersonalizationSTAGE DCustomerMulti-Channe
6、lAnalysisCapture/FuseOther ChannelsHow the Web Fits-B2C11/12-13/015The Impact Marketing Can Make:Immediate Business Benefits Current PotentialWhat If Visitors Per Day 50,00050,00050,000Click to Buy Ratio 2.00%2.10%2.50%Buyers Per Day 1,0001,0501,250Average Purchase$50$55$60Daily Revenue$50,000$57,75
7、0$75,000Annual Revenue$18,250,000$21,078,750$27,375,000I N C R E A S E$2,828,750$9,125,00011/12-13/016Phase 1-mass advertising0.1-0.5%Phase 2-tailored marketing 1-5%Phase 4-simple events 5-30%Phase 6-multi-step/channel 20-50%Phase 7-event based40-60+%Expected Marketing Success11/12-13/017The Marketi
8、ng Tools“Stack”Data Warehousing-to hold all of the dataActive Data Warehousing-to trigger eventsE Data Warehousing-to hold the E data,tooE Analytics-to analyze the E dataCRM Analytics-to analyze all the channel data,run campaigns,get deeper insightsData WarehouseE-Business CRM11/12-13/018Top 10“E”Th
9、ings To Know#1 Learn from Experience#3 Market Shakeout#2 How It Works#5:Advanced Personalization#6 Market Insights#7 1:1:1:1:1 Marketing#8 Personalization vs.Privacy#9 The Future of Advertising#10 Next Generation Internet#4 Sector Trends 11/12-13/019#1:Learn from ExperienceSenshukai(Japan)11/12-13/0
10、110#1:Learn From Experience Travelocity-Pure Play/Travel 27M members,biggest online travel site Marketing efficiency:10X the number of insights;the speed of query answering drives much more exploratory marketing,what-if questions Uses:tighter target marketing,driving e-mail marketing campaigns to se
11、lect audiences based on special fares that become available.11/12-13/0111#1:Learn from ExperienceTravelocity story in Forbes,7/9/01 “Early last year TWA announced a special$360 round-trip fare between Los Angeles and San Juan,Puerto Rico.Travelocity,which with 27 million members is the webs biggest
12、online travel site,wanted to take advantage of the promotion.A traditional marketing pitch would have notified the whole Hispanic community in the L.A.area,including those with no interest in Puerto Rico.Instead,Travelocity consulted its data warehouse,a central repository for all the significant tr
13、ansaction and customer data the site collects.In a few hours it identified 30,000 customers in L.A.who had inquired about fares to Puerto Rico.An e-mail went out to them the next morning;an astounding 25%either accepted the TWA offer or booked another Caribbean flight.”11/12-13/0112We have demonstra
14、ted success in applying data warehousing technology to address specific problems of E-Businesses.#1:Learn from Experience Same-day analysis of web(clickstream)data improvement vs.Oracle in load time of clickstream logs from 8 hours to 1 hour 40 minutesFaster time-to-solution projected 90 days levera
15、ging E-Business entity-relationship models(50-70%of business model pre-defined)Increasingly refined segmentation of customers 6 marketing people run 40 web campaigns simultaneously on 200 segmentsMonster complex query performance execution of complex queries to detect and block competitor robot sess
16、ions11/12-13/0113#1:Learn from ExperienceWhere Teradata Data Warehousing helps to address key e-business problems Database Power Massive growth of customer data from web and operational sources Interaction data can dwarf the transaction data(10X)Scalable load and query capability Database as Integra
17、tion Point Multi-channel access to warehouse content Ability to use one Logical Data Model for it all Analysis and predictive modeling to support personalized Customer Relationship Management11/12-13/0114NCR providedCustomer provided3rd Party providedDemographic Data(External)Teradata Data Warehouse
18、TeraMinerPredictive Web ModelsWeb Mining ServicesTools and Utilities Web Analytic Reports Trending data,etc.Consumer#2:How It WorksBusiness Intelligence ApplicationsRetailIntelligent ECCRM SolutionFinancialBehaviorExplorerValue AnalyzerCommInsuranceAirlinesE-PlumbersBI/e-AdvertisingWeb Log DataOpera
19、tional and Registration DataETL UtilitiesAd ServerContent ServerCommerce Application ServerPersonalizationEngineOLTP DB11/12-13/0115 Campaign Analysis Pre-campaign-Design most effective campaign Post Campaign-Run campaigns with the best ROI Current Campaign-Optimize campaign effectiveness Cross Chan
20、nel Analysis Optimize resources by most profitable channel#2:How It Works-Reports eLDM Ad Hoc Queries Pre-Packaged Queries ETL Scripts ServicesWeb Site Analysis Traffic-Plan for growth of web site infrastructure Referral-Target the most effective ways of attracting visitors to a web site Customers-D
21、esign web sit for more effective browsingCustomer Analysis Profitability-Increase a customers profitability Profiling-Recognize profitable customers by profile Loyalty-Increase customer retention Acquisition-Reduce cost of customer acquisition11/12-13/0116#2:How It Works:Visitor Analysis eLDM Ad Hoc
22、 Queries Pre-Packaged Queries ETL Scripts Services BIMsVisitor Tracking&Analysis Weekly,Daily,Hourly-What is the total number of pages for new and repeat visitors,average number of pages for new and repeat visitors,and average visit(session)duration for new and repeat visitors?Visitor Demographics-I
23、dentify the type of visitors that were shown a particular ad image.Referring Domains-What are the top referring domains from highest to lowest along with the number of referrals made by each domain.Visitor Interest Analysis Information-What visitors and what segments request further info.Register-Wh
24、at visitors/segments respond to surveys,games,sweepstakes,etc.Service-What visitors/segments request customer service.Visitor Demographics Age,Gender,Marital Status,Homeowner Status,Employment,etc.11/12-13/0117Sample Questions How effective are my marketing efforts?Translation:Ad revenuc,cost,and pr
25、ofit by campaignHow do visitors respond to different ads driving to site?#2:How It Works:Advertising Reports 11/12-13/0118#2 How It Works:Web Campaign AnalysisHow effective are my advertising efforts?Ad revenue,cost,and profit by campaign11/12-13/0119#2:How It Works:Referral AnalysisWhere did the mo
26、st profitable customers come from?Visitor type by referral site11/12-13/0120#2 How It Works:Abandoned Basket Analysis By Banner Ad And Referral,Year To Date11/12-13/0121#2 How It Works:Cross Channel BehaviorPurchase Preference Analysis By Customer Profit Segment And Channel For Womens Tops Category,
27、Last 3 Months11/12-13/0122#2:How It Works:Product Preference Analysis By Customer Profit Segment And Channel For Womens Tops Category,Last 3 Months11/12-13/0123#2 Summary:How It WorksE-Reports provide marketers with the power to:Analyze consumer purchasing behaviors across all sales channels Analyze
28、 how sales in one channel directly affects sales in other channels Identify sales and margin contributions by customer segment by channel Leverage customer conversion information from one channel to determine the optimal product mix for additional channels11/12-13/0124The State of the Art-Were Still
29、 All Learning!12346Event-based cross-channel personalized communicationUntargeted mass advertisingBasic channel-specific customizationSingle channel targeted campaigns&advertisingSingle channel,simple event based mrktingMulti-step,multi-channel campaignsSingle channelMulti-channelPersonalizationAnal
30、ysisBasic customerRevenueCross SellLoyalty Complete(Profit driven)Relationships5Advanced customization&personalization78 Multi-faceted integration11/12-13/0125#3:Market Trends PlumbersB2BDot ComsB2CClick and MortarsB2C11/12-13/0126#3 Market Shakeout1 Year View of High Tech Stocks Source:CBS Marketwa
31、tch11/12-13/0127#3 Market Shakeout E-Meltdown,just like 1637 “Dot.Com”-“Dot Bomb”Hundreds of companies went under Stock prices collapse Unrealistic or bad business plans No way to get to profitability Revenge of the Click and Mortars Multi-channel advantages Stock stability Much better positioned to
32、 understand what works on the web 11/12-13/0128#3:Market Shakeout-FundamentalsBUT:were still in the infancy of using the web:Online purchases as a percentage of total retail sales were 0.92%in Q2 2019.Domestic retail e-commerce sales in Q2 2019 were up 24.7%from year-ago sales.-U.S.Census Bureau,rep
33、orted in iMarketing News,August 31,2019-Jupiter Media Metrix press release,May 22,201911/12-13/0129IDC Predicts Steady Growth in Every Metric:2X the number of Internet Users.522M(2019)to 976M(2019)3X the number of Internet Buyers.142M(2019)to 446M(2019)$5 Trillion of Internet Spending WW by 2019Sour
34、ce:IDCs Global Market Forecast for Internet Usage and Commerce,4/2019Note:80%of the spending will be B2B#3 Market Shakeout-Fundamentals11/12-13/0130#3 Market Shakeout-FundamentalsGrowth in USA Online CustomersGrowth in USA Online B2C SpendingSources:various Jupiter studies,201911/12-13/0131Click and
35、 Mortars Rule!Old economy rules applyThe Pressures Off Multi-channel strategies increasingly importantDot Com Shakeout 1000+failures 31,000 layoffs Customers are the biggest asset 80-20 rule in playBits,not atomsFocus switches from branding to profitability#4:Sector Trends11/12-13/0132Similar Shakeo
36、ut forB2B Exchanges Expect 80-20 rule to apply here,too Big Cost Savings from Inventory ReductionsCollaboration#4:Sector Trends So Whats Next?Shift from tech to business drivers Proofs(ROI)mandatoryAs well as Best Practices 11/12-13/01339/11 Impacts Travel:short-term downGovernment:bigtime upRetail:
37、little impact Comm:down#4:Sector Trends 9/11 Impacts Financial:little impact Manufacturing:no impact Healthcare:no impactInsurance:down 11/12-13/0134In New Orleans,we showcased a demo with the ability to use BroadVision to personalize NCR bank ATMs.Samantha:19 year old college student Better deal on
38、 a college loan!Bob:50 year old with 1 year left on car loan Better deal on a new car loan!Vivian:CEO of an Internet startup Update on current investmentsEnvision 3 people in line at an ATM:#5:Advanced Personalization11/12-13/0135In Retail,envision kiosks with bar-code reading capability at the end
39、of each aisle in a store.Samantha:pressed for time mother Kiosk suggests meal ideas,based on knowledge of past purchasesBob:business buyer Kiosk provides discounted price,plus information about any specials for bulk purchasesVivian:needs to check on salt contentKiosk automatically provides thisimmed
40、iately for any bar swipeEnvision various users:#5:Advanced Personalization11/12-13/0136AnalyticsMarketingETL ToolsRules,ProfilesBroadVisionOne To OneTeradata N C RCrossIndustry AnalyticsCRMAnalyticsTouchpointsCustomersPCsWirelessSelf ServiceDevicesAdaptersVerticalIndustryAnalyticsBV-Enabled Offers#5
41、:Advanced Personalization11/12-13/0137#5 Advanced PersonalizationMoment to Moment MarketingDIALOGUEPersonalizedInteractions andTransactionsBroadVision dynamically applies Business Rules to foster a smart real-time dialogue.clickresponseTeradata captures and analyzes all customer behavior.This Single
42、 View of the Customer drives BroadVision with optimized Insights and business rules.Teradata E-BusinessAnalytics and CRMINSIGHTBehaviorCapture andAnalysisupdateenhanceclickclickresponseresponseTimeFrame:SecondsTimeFrame:Hours or DayseWeb-EnabledTouchpoints11/12-13/0138#5:Advanced Personalization Dee
43、per Relationship With Each CustomerAbility to See the Distinguishing CharacteristicsFrom 1 segment of 10,000 to 4 segments of 2,500 to 10 segments of 1,000 to One to One Depth of Any One Relationship:The more clues you collect from dialogues over time,the more tightly focused and relevant the dialog
44、ue will be Ever Increasing Insights11/12-13/0139Key:The Extended EnterpriseYour CompanyRelationships with Your CustomersRelationships with Your Partners Relationships with Your EmployeesWebWebWebWeb-EnabledB2CB2BB2E11/12-13/0140#6:Market Insights for B2BeLDM Ad Hoc QueriesETL ScriptsBI Services Pack
45、aged Reports BIMs Data Mining Models Data TapsSeller Metrics What is the overall volume of transactions in the industry segment?What is my companys share of the volume of business that took place?What is the composition of demand by industry segment,by geographic market sector,and by commodity code?
46、Demand Forecasting How much demand for product will there be by commodity,by quantity,by lead time,by quality,by order size,etc.How much raw material will be required to meet demand by commodity,by quantity,by service level,by region,etc.Buyer Metrics What is the best,median,and worst in class lead
47、time for my vendors by order quantity,by season,and by quality?What is the average First Time Yield(FRY)by commodity,by vendor,by region,by order quantity,and by season?What is the best,median,and worst in class FRY for my vendors by order quantity,by season,and by quality?11/12-13/0141 Wal*Mart is
48、huge,and growing at 22%/year:$200B/year 1M+employees,2485 US stores,1000 Intl stores,456 Sams Clubs All point of sale information is stored in an NCR Teradata DW:2 mirrored 101 Terabyte systems and growing rapidly Several years ago,Wal*Mart built Retail-Link(TM):a private B2B site that links Wal*Mar
49、t suppliers to the Teradata DW Provides Wal*Mart product and category managers with instant access to trending information#6:B2B Case Study:Wal*Marts Use of Teradata 11/12-13/0142What Wal*Mart did Provided web access to 7600 vendors to their master sales database containing information about all the
50、 stores,and all the products Provided DB Views so each vendor can only see its own product lines More than 120,000+Supplier queries/weekHow it paid off Wal*Mart expects vendors to pull reports to stock its shelves,alter mixes.Pays vendors only when products ship;dramatically lowering carrying costs