Mike Gualtieri, Principal Analyst Webinar Harnessing Customer Data And Predictive Analytics To Deliver Engaging Digital Experiences Noel Yuhanna, Principal Analyst Mike Gualtieri, Principal Analyst December 7, 2012. Call in at 10:55 a.m. Eastern time

Outlook Image source: iStockphoto (www.istockphoto.com)

96% Image source: Flickr (http://www.flickr.com/) 96% of hardware decision-makers say that data stored in their firms is increasing. Source: Forrsights Hardware Survey, Q3 2012

Business intelligence means customer intelligence No. 1 priority for 2011 No. 5 priority for 2009 Source: May 27, 2011, “Forrsights: The Software Market In Transformation, 2011 And Beyond” Forrester report

54% Image source: iStockphoto (http://www.istockphoto.com/) Budget decision-makers plan to increase spending in 2012 on real-time analytics and big data solutions. Source: Forrsights Budgets And Priorities Tracker Survey, Q4 2012

The potential to acquire new customers is mind- boggling. 7 billion Image source: NASA (http://www.nasa.gov/) The potential to acquire new customers is mind- boggling.

October 6, 2016 © 2012 Forrester Research, Inc. Reproduction Prohibited 7

Melissa Image source: iStockphoto (http://www.istockphoto.com/)

“Customer experience is the only sustainable source of competitive advantage.” Harley Manning Kerry Bodine © 2012 Forrester Research, Inc. Reproduction Prohibited 9

Harold Image source: iStockphoto (http://www.istockphoto.com/)

Make it personal. © 2012 Forrester Research, Inc. Reproduction Prohibited 11

Source: Aceshowbiz.com (http://www.aceshowbiz.com/) Butler

2016 Image source: Google Plus (https://plus.google.com)

Firms that make it personal will thrive. Image source: iStockphoto (http://www.istockphoto.com/) Firms that make it personal will thrive.

“A multidimensional view of each individual customer is a prerequisite to delivering personalized customer experiences.” Forrester Research © 2012 Forrester Research, Inc. Reproduction Prohibited 15

Integrated with digital channels What does the next-generation customer data management platform need to support? Personal information Predictive (butler) Image source: iStockphoto (http://www.istockphoto.com/) Real-time insights Integrated with digital channels

The traditional 360° view of the customer is not enough to make it personal CRM Social data Tweets Interactions Customer Past orders Items clicked Clickstream Other apps

Create a multidimensional view of Melissa and Harold to make it personal Geolocation Relationships Mood Aspirations Competitive firms Family Personal information Adjacent firms Devices Melissa’s world Tweets Melissa Interactions Social data Other apps Items clicked Past orders Clickstream CRM app

Customer data Image source: iStockphoto (http://www.istockphoto.com/) Do you have the right data tools, technology, and architecture to deliver personalized experiences for your customers?

Playing the silo-integration shuffle is insufficient. Bad news Image source: iStockphoto (http://www.istockphoto.com/) Playing the silo-integration shuffle is insufficient.

No surprise: Integrating data from a variety of sources is a top challenge Source: Q1 2012 Global Customer Analytics Online Survey; August 8, 2012, “The State Of Customer Analytics 2012” Forrester report

New architecture, tools, and technology exist now. Good news Image source: Flickr (http://www.flickr.com/) New architecture, tools, and technology exist now.

Three key investments to achieve a multidimensional view of a customer Queries Apps Upsell/cross-sell Design Reports Insights Alerts 3 2 Real time/in-memory Predictive analytics Next-generation customer data management 1 Traditional integration Big data Twitter Clickstream Logs Facebook CRM Other apps

FORRESTER “Big Data is the frontier of a firm’s ability to store, process, and access (SPA) all of the data it needs to operate, make decisions, reduce risks, and serve customers.” DEFINITION

Big data technologies store, analyze, and access a multidimensional view of the customer Can you collect and store all your data? Store Can you cleanse, enrich, calculate, translate, and run algorithms against the data? Analyze Can you retrieve, search, and visualize all your data? Access

Big data requires an ecosystem of technologies to help handle customer data Hadoop Distributed in-memory NoSQL databases Enterprise data warehouse

Predictive analytics Image source: iStockphoto (http://www.istockphoto.com/) Predictive analytics will help you find valuable, personalized interactions with your customers.

Can you prevent Melissa from switching to a competitor’s mobile plan? Churn Image source: iStockphoto (http://www.istockphoto.com/) Can you prevent Melissa from switching to a competitor’s mobile plan?

How can you provide Harold with a perfect recommendation? Advice Image source: iStockphoto (http://www.istockphoto.com/) How can you provide Harold with a perfect recommendation?

Just a few examples of how organizations use predictive analytics today Mobile carriers prevent customers from switching to another carrier. Keep customers. Netflix recommendation engine Google search engine Dazzle customers. Reduce hospital re-admittance. Human genome markers Save lives. Replace parts before they shut down the production line. Prevent breakdowns. Retail product placement/groupings Sell more. Energy exploration Find opportunities.

Predictive analytics is a continuous process of discovery The right data to establish a cause and effect Enough data to be significant Causative data Understand business outcomes. Create hypotheses about data mining algorithms that will create predictive rules. Data analysts Data preparation Discovery (visualization and machine learning algorithms) Evaluation and optimization Modeling software Data to feed model Model execution (embedded and callable service) Model deployment

In-memory delivers faster predictive modeling and real-time experiences Customer data in-memory offers faster real-time data access, processes big data quickly, and offers new insights and opportunities. Faster Advanced analytics Real-time New opportunities In-memory customer data (Horizontal scale) CRM Social media Clickstream Big data Logs

customer data management Your next-generation customer data management platform Queries Apps Upsell/cross-sell Dashboard Reports Insights Alerts Real time/in-memory Predictive analytics Next-generation customer data management Traditional integration Big data Twitter Clickstream Logs Facebook CRM Other apps

Invest heavily. © 2012 Forrester Research, Inc. Reproduction Prohibited 34

To make it personal, invest heavily in a multidimensional customer data architecture Invest in big data technologies like Hadoop. Invest in a comprehensive set of predictive analytics tools. Invest in distributed in-memory to support real-time predictive analytics and a multidimensional view of the customer. Create budgets for data research and customer experience design.

7 billion Image source: NASA (http://www.nasa.gov/)

Mike Gualtieri mgualtieri@forrester.com Twitter: @mgualtieri Noel Yuhanna +1 650.581.3807 nyuhanna@forrester.com