Turning Information Into Knowledge

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Invest in a Brilliant Future
Turning Information Into Knowledge
David Purcell June 25, 2002
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Leverage Your Database

• Turning Information into Knowledge
• with Data Mining
• Learn more about your readers
• Offer Advertisers a Service
• Total Market Coverage (Business Model)
• Create a Visual Return on Investment
• Marketing Campaigns

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a period when the most successful companies can
capture information from all their enterprise
systems and organize it in a central location.
Once organized distribute the information to the
decision makers in a manner that will make a
difference.
The Information Age
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is the start-to-finish process of collecting,
storing, and using data to improve business
decisions
Business Intelligence
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Business Intelligence
subscribers
Data Warehouse
Web Log
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Business Intelligence
Business question
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Prediction is the key to adding the value to your
data
The Ability to Predict Behavior and Deploy
Knowledge is the key to data mining Turns
Information into Knowledge
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What is Data Mining?

• Data Mining..
• is the process of discovering hidden patterns and
  relationships in data in order to make better and
  more informed decisions.

• Data Mining should provide Insight into your
  data
• Ability to Predict Behavior
• Ability to Deploy Knowledge

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• Predict what customers will purchase a specific
  product based on past historical patterns.
• Classify / Cluster Finds ways to segment
  customers based on buying patterns or other
  attributes to help with your marketing campaign
  effectiveness.
• Associate Perform market basket analysis (what
  products are customers buying together) to
  determine your best cross-selling opportunities.

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Next Likely Purchase
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What is Data Mining?

• Data Mining..
• is the process of discovering hidden patterns and
  relationships in data in order to make better and
  more informed decisions.

• Data Mining should provide Insight into your
  data
• Ability to Predict Behavior
• Ability to Deploy Knowledge

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Deployment
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Deployment
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Data Mining Information Management gives you
the answers

• Is there something else they would like to buy?
• What is the Potential Lifetime Value of this
  customer?
• Am I in danger of losing this customer?
• Do I care?
• Is it worth contacting this person?

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to solve your most pressing business problems

• Increasing store traffic
• Mark down analysis
• Reducing mailing costs
• Market-based analysis
• Optimize store layouts
• More ROI on promotions
• Optimize Web Site Traffic
• Forecasting
• Business performance monitoring

• Predicting Churn
• Increasing sales
• Increasing profitability
• Increasing website profitability
• Cross-sell/Up-sell
• Customer retention/loyalty
• Predicting Fraud
• Predicting Credit risk
• Acquiring customers effectively

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Business Intelligence
Analytical CRM
Operational CRM
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The Customer Life Cycle
Benefits of Analytical CRM
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TMC Total Market Coverage

• A Business Model

Providing a Direct Mail Marketing service for
their advertisers
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TMC - Total Market Coverage

• Newspaper becomes a service provider to their
  advertisers
• Produce Print the Direct Marketing Advertising
  Material
• Distribution Mechanism
• Inserts into their Newspapers
• Distribtution represents a substantial Cost
  Reduction for their Clients

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Data
Collection of organized Information
CUSTOMER MASTER
SALES HISTORY
WEB Log
Data Base / Data Warehouse / Data Repository
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Deployment
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Data Mining Total Market Coverage

• Turns Information into Knowledge
• Leverages investment in data
• Visualizes the ROI for your Customer
• Adds Value to your overall TCM Offering
• TCM to Evolve into Web Data Mining

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e-Business data mining

• All user interaction leaves trails
• browsing, searches, referrals, forms,
• clickstream data
• Rich behavioral information
• But hidden in bulk and complexity of web logs

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Answers in Web log data
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Web data

• Web logs

• Cookies

• Registration data

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What if, when visitors came to your web site, you

• could make your personalization efforts more
  effective
• turn visitors into buyers
• turn buyers into loyal, repeat customers

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Mike
Liz
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Mike
Liz
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Enterprise
Customer
Campaign
Enterprise-Initiated, Marketing-Driven
Intrusive 3 Success
Event-Driven
Customer-Triggered, Product as Service
Convenient 20 Success
Real Time
Appropriate 40 Success
Customer-Initiated, Relationship-Driven
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a period when the most successful organizations
will be those who can capture information, create
knowledge and distribute it to the enterprise in
a way that makes a difference.
The Knowledge Age
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Thank You
David Purcell dpurcell_at_spss.com 800-543-2185 ext
3261