SOLUTION OVERVIEW

SAS Customer Intelligence for Retail

Maximize customer profitability through advanced behavior tracking, customer segmentation, campaign management and real-time offer optimization

Overview
Retailers often struggle to answer some simple questions: Who are my best customers? What can we do to retain them? How can we attract others like them? How can we improve the profitability of all our customers? In sum, how can we know our customers well enough to build loyalty by consistently surprising and delighting them with every interaction? Harnessing the power of deep customer insight is a critical component of success for retailers that will not only survive, but thrive, in the 21st-century retail marketplace. However, before effectively delighting customers, retailers must ensure that customer-focused processes are in place enabling the creation and execution of optimized communication programs that provide quantifiable results and support fundamental business objectives. By combining enterprise data management, advanced analytics, campaign management, customer interaction management and real-time decision making, SAS Customer Intelligence helps retailers realize fast, significant returns on marketing investments. The solution synthesizes your customer data across lines of business and across all customer touch points.

n Challenges
Evolving customer interactions from a transactional to relationship basis. Retailers must deliver personalized communications and shopping experiences that build loyal relationships at all points in the customer life cycle. Choreographing the sophisticated communications required to retain current customers and acquire new ones. Legacy marketing applications are simply not capable of transforming huge volumes of customer data into the intelligence needed to improve the return on marketing investments. Coordinating outbound campaigns, such as direct mail, with inbound customer interactions. In the absence of a clear understanding of customer behavior, it is extremely difficult to effectively trigger appropriate and timely offers and communications. Consistently measuring results. Without the ability to track customer interactions, there is no way to reliably measure the impact of campaigns on customer behavior.

Maximize returns on marketing investments

n Key Benefits
SAS Customer Intelligence for Retail helps you: Understand the relative importance and buying patterns of each customer segment. Determine the best target audience, communication mix, customer channel, and campaign offer and style preferences for any campaign. Identify cross-sell, up-sell and retention opportunities especially those driven by behavioral and transactional events. Recognize and react to time-sensitive opportunities through real-time tracking of customer behavior.

Capabilities
SAS enables a data driven, customerfocused marketing process delivered through an integrated marketing platform. Whether a retailers need is to bolster customer insight by calculating customer lifetime value, to execute more efficient and effective customer interactions using a campaign management solution, or to instill accountability across marketing, SAS Customer Intelligence provides the widest range of functional capabilities available.

Manage quality customer data by accessing virtually any database to create a customer-centric data repository, moving data between operational and marketing systems, and cleansing the data to ensure decisions are made using the right data.

n Associated SAS Solutions:

SAS Customer Insight for Retail provides strategic segmentation and behavior predictions based on customers demographic, psychographic, transactional and attitudinal data. Additionally, the solution can segment and profile stores based on transaction history and trade-area demographics. SAS Transaction Insight for Retail profiles and segments stores based on transaction activity, product classes, unit sales and much more. It also allows merchants to profile retail outlets based on the demographics of their customers, thereby highlighting subtle variances that can be used to fine-tune merchandise allocation, store staffing and promotions. SAS Data Integration provides a single environment that seamlessly integrates data quality within the data integration process, taking users from profiling and rules creation through execution and monitoring of results.

Deepen Customer Insight

To gain insight into what customers will do in the future, it is important to first understand past interactions. SAS enables retailers to manage customer data and understand the behavior patterns of their best and worst customers. By having insight into customer attitudes, behavior, profitability and risk, retailers can make smarter decisions that simultaneously drive business results and delight customers. Profile and segment customers based on historical behavior, profitability and lifetime value. Predict customer behavior using a range of analyses, including customer value analysis, market basket analysis, customer segmentation, customer profitability, response modeling, churn analysis, credit scoring and more.

Choreograph Customer Interaction

Customers want to feel as though companies understand them and customers expect to be treated consistently. A well-orchestrated marketing campaign requires coordination and synchronization across multiple channels. SAS provides the ability to choreograph a comprehensive, multichannel marketing communication strategy that optimizes every resource to allow retail organizations to effectively achieve strategic goals and maximize return on investment (ROI). Develop and optimize segment strategies using customer insights to determine how much time, effort and resources are needed for selling or marketing to each customer segment and evolve customers throughout their lifecycles. Optimize ROI for every customer communication. Engage effectively with customers by implementing effective, consistent and timely communications across channels. Base offers and communications on predicted future customer behavior, not past activities. Effectively personalize customer interactions to transform perceptions of your retail enterprise from the store to my store.

repeatable, easy-to-use environment capable of quickly executing a wide range of campaigns, from simple to very complex, from strategic, planned market programs to opportunistic, near-real-time communications aimed at a precise audience. SAS Marketing Automation is the most comprehensive marketing automation solution available. This solution provides everything needed to turn raw, disparate data into profitable campaigns. SAS Real-Time Decision Manager combines SAS Analytics with business logic and contact strategies to deliver real-time decisions and recommendations to interactive customer channels such as the Web, the call center, point of sales (POS) and in-store kiosks. SAS Digital Marketing provides large-scale multimedia messaging capabilities including e-mail, mobile, RSS and Web within single-channel or multichannel marketing campaigns. The solution is scalable, secure and comprehensive, including data access, segmentation, content integration and hosting, and deliverability assurances. SAS Interaction Management identifies material changes in consumer buying patterns for follow-up through multiple direct marketing vehicles. It also facilitates marketing conversations through call center, Web site or checkout counter communications that are triggered on the basis of patented behavior tracking technology.

1-800-FLOWERS.COM Sees Revenue Hike with SAS

By 1992, before many companies had even heard of the Internet, 1-800-FLOWERS.COM already had an online presence. CEO Jim McCann says 1-800-FLOWERS.COM is again transforming itself, this time from a company thats based on operational excellence to one rooted in intimate knowledge of its customers. At 1-800-FLOWERS.COM, SAS spans the entire decision-support process for managing customer relationships. Collecting data at all customer contact points, the company turns that data into knowledge for understanding and anticipating customer behavior, meeting customer needs, building more profitable customer relationships and gaining a holistic view of a customers lifetime value. In short, 1-800-FLOWERS.COM relies on SAS to turn brand loyalty into personal relationships with more than 10 million customers.

n Associated SAS Solutions:

SAS Campaign Management makes it easy for retailers to automate marketing processes, increase productivity and execute campaigns on time and on budget. It features an automated,

Continuously Improve Marketing Performance

To maximize retail marketing investment returns, it is critical to implement a closed-loop marketing process that self-adjusts over time. SAS provides the scorecards, reporting and underlying analytical capabilities needed to instill accountability and have complete visibility of marketing processes and the resulting performance so merchants can make midcourse corrections when they hit a bump in the road. Measure and report on all aspects of the operation by aligning activities to strategies and goals to improve the performance and accountability of marketing, sales and service. Optimize investment across direct and indirect marketing by continuously monitoring, predicting and optimizing your mass marketing, pricing, promotion and other activities. Continuously learn and improve through an integrated marketing platform and closed-loop marketing process.

can see what sort of person drops the shopping basket at the final hurdle and why so they can prevent it from happening in the future. SAS Web Analytics also tracks responses to e-mail campaigns. SAS Veridiem MRM helps companies understand the business value of investments such as advertising, promotions, incentives, direct mail, events and the Web. It does this by providing a range of capabilities, including marketing-mix modeling, marketing investment simulations and guided analyses.

SAS Operational Intelligence Leverage organizational assets to serve customers and trade with vendors efficiently and profitably. SAS for Performance Management Analyze, forecast and maximize profits across the entire value chain and monitor performance toward common goals.

About SAS
SAS is the worlds largest privately held software company and the industry leader in business intelligence. Today, SAS serves more than 4 million users at nearly 43,000 sites in 111 countries, including more than 80 percent of FORTUNE Global 500 general merchandisers and specialty retailers. SAS is also an associate member of the National Retail Federation. For more than three decades, SAS has been giving retail organizations THE POWER TO KNOW. SAS leverages the investments youve already made in operational and transactional systems, adding a layer of intelligence you cant get anywhere else. For more information, visit us at www.sas.com.

About SAS Retail Intelligence

SAS offers a comprehensive vision for complete retail intelligence. Retailers can employ a wide range of powerful SAS solutions, all built atop a common retail business intelligence platform, to allow for rapid integration and lower total cost of ownership. These solutions include nearly three decades of SAS retail analytics experience and merchandising best practices. No other vendor offers such a comprehensive, integrated set of solutions for retailers. SAS Customer Intelligence Identify, acquire, activate, serve and retain profitable customers. SAS Merchandise Intelligence Drive revenue, protect margins and earn customer loyalty with optimized merchandise plans, assortments, demand forecasts, pricing, promotions, space plans and allocations.

n Associated SAS Solutions:

SAS Marketing Optimization applies powerful mathematical approaches to optimize marketing ROI given limited budgets, channel capacities and other constraints. SAS Web Analytics helps companies learn how each individual navigates through its Web site. With SAS, retailers

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