Big Data. Is there a pot of gold…?
By, Peter Zäll, Vice President Product, Marketing and Analytics at Svenska Spel
No doubt big data has been the “Buzz word” for the last couple of years! Everyone talks about the pot of gold at the end of the rainbow. But is it even possible to get there? How long will it take? What is the real business value? Has anyone succeeded?
The board at Svenska Spel asked me the same questions around big data, analytics and CRM. I used the PZAC model to break down the value, the capabilities needed, our status now and our projected status two in years from now.
The business value. Imagine that you can figure out how to most efficiently understand, interact with target and develop your customers by personalized, real-time communication in all channels? We estimate (as does Gartner) the incremental GGR to be between 3-20% in GGR. Even if you are on the low side, the ROI is obvious.
So, the PZAC model elaborates around seven steps, key questions and capabilities to achieve big data driven excellence.
- Do you even have the basic (raw) data to work with?
Every Lottery captures data for Online customers. What, when, where, and how often they play, how much they spend, etc. BUT, since 2014, at Svenska Spel we also capture all customer data in retail and in VLT’s (through mandatory registration of all gambling). This gives us the ability to identify all customers in all channels in a 360 view, which is crucial for us to understand the full actual behaviour of our customers.
- Do you have a good Analytics platform to sort out the data? And is it working?
A very common problem is that most companies store data in different systems which makes digging for data time consuming. Another problem is different terminology and definitions which generate multiple versions of the truth. At Svenska Spel we invested a couple of years ago in a new modern platform (Hadoop). It will still take us two more years to complete the upload and sorting of data to get the full use of the platform.
- Do you have the analysts and the environment they want to work in?
You won’t get any descent analysts if you can’t deliver a vision, a strategy and an environment for them to work efficiently in.
- Do you have BI- and self-service reports/tools for the organisation?
If you do, the organisation can quickly and correctly withdraw basic reports and analyses themselves which will improve data driven understanding and business decisions. If you don’t … they will slow down everything and ask analysts for information that should be automated.
- Do you work with predictive analytics?
Imagine you could predict which customers that are most likely to act on whatever you think is important. At Svenska Spel we are just starting to work on this now in 2017. We estimate that we have developed our predictive analytics skill to 60% of our target by the end of 2018.
- Are you a Customer-centric governed organisation?
Everyone says they are customer focused, but the truth is that most organisations are still product and/or channel focused. Does top management discuss sales and movements from a customer view? Or do they still only discuss it from a product and channel perspective? Does your organisation set objectives, strategies and development plans from a customer segment point of view? Do you have KPI’s on customer segment level?
- Are you working with advanced CRM?
If you want to be relevant with your customers, at all times, in real-time, in all channels … First, you need to work with all steps mentioned above. Second, you need a modern CRM platform. We (the lottery industry) do have an advantage over several other industries (telecom, travel, fashion etc.). The advantage is that our customers visit us more frequently online. Many customers visit us every week, to play or to check their results. This means that our own online channel is super important as a CRM channel. Imagine recognising every customer when they visit with a relevant message just for them, in combination with other CRM channels; email, postal, SMS, notifications, social media etc., this turns into a huge opportunity, to always be relevant depending on how you want to develop your customers.
In conclusion, there is a pot of gold at the end of the rainbow, but you need to know where you are right now. You need a credible vision and strategy to get there. It will take time and it will take top management commitment to succeed and it is my firm belief that if you don’t invest here, you will be left behind.
Ps. In regards of the PZAC MODEL… don’t google it. Since “No prophet is accepted in his own hometown” and to keep my boards, and your, attention… I waited to the end to reveal what PZAC stands for: Peter Zall’s (own) Analytics and CRM model … Good luck with your data! 😉
- Disposez-vous des données de base (brutes) à traiter ?
- Disposez-vous d’une bonne plateforme d’analyse pour trier les données ? Et ça marche ?
- Disposez-vous des analystes et de l’environnement dans lequel ils souhaitent travailler ?
- Disposez-vous de reporting/outils en Business Intelligence (BI) et en self-service pour l’organisation ?
- Utilisez-vous l’analyse prédictive ?
- Êtes-vous une organisation gouvernée par le client ?
- Travaillez-vous avec une GRC avancée ?
- ¿Cuentan con los datos básicos (sin procesar) con los que trabajar?
- ¿Disponen de una buena plataforma de análisis para clasificar los datos? ¿Está funcionando?
- ¿Cuentan con los analistas y con el ambiente en el que estos desean trabajar?
- ¿Tienen los informes y las herramientas autónomas y de inteligencia comercial para la organización?
- ¿Trabajan con análisis predictivos?
- ¿Son una organización centrada en el cliente?
- ¿Están trabajando con un sistema de CRM avanzado?
- Haben Sie überhaupt die grundlegenden (rohen) Daten, um damit zu arbeiten?
- Haben Sie eine gute Analytics-Plattform, um die Daten zu sortieren? Und funktioniert sie auch?
- Haben Sie die Analysten und das Umfeld, in dem sie arbeiten möchten?
- Haben Sie BI- und Selbstbedienungsberichte bzw. -werkzeuge für das Unternehmen?
- Arbeiten Sie mit prädiktiver Analytik?
- Sind Sie ein kundenorientiertes Unternehmen?
- Arbeiten Sie mit einem modernen CRM?
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