Big Data. Is there a pot of gold…?

Proving the real business value of Big Data, and the 7 essentials to achieve big data driven excellence.

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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?

  1. 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! 😉

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Synopsis

Français
Big data. Y a-t-il un chaudron rempli d’or… ? Sept étapes vers l’excellence axée sur les données ! Par Peter Zäll, VP produit, marketing et analyse chez Svenska Spel Le conseil de Svenska Spel m’a demandé de prouver la valeur réelle des Big Data, de l’analyse et de la gestion de la relation client (GRC). La valeur commerciale Imaginez que vous puissiez saisir comment mieux comprendre, interagir, cibler et développer vos clients grâce à une communication personnalisée en temps réel dans tous les canaux ? Nous estimons que (comme le fait Gartner) les revenus mondiaux provenant des jeux d’argent et de hasard (Global Gambling Revenue, GGR) incrémentiels se situent entre 3 et 20 % de GGR. Même si vous êtes dans la fourchette basse, le ROI est évident.
  1. Disposez-vous des données de base (brutes) à traiter ?
Quoi, quand, où et à quelle fréquence jouent-ils, combien dépensent-ils, etc. Depuis 2014, chez Svenska Spel, nous saisissons également toutes les données sur les clients en ligne, au détail et dans les terminaux de loterie vidéo (Video lottery terminals, VLT), grâce à l’enregistrement obligatoire de tous les jeux d’argent et de hasard. Cela nous donne la possibilité d’identifier tous les clients dans tous les canaux dans une vue à 360°, ce qui est crucial pour nous permettre de comprendre le comportement réel complet de nos clients.
  1. Disposez-vous d’une bonne plateforme d’analyse pour trier les données ? Et ça marche ?
  2. Disposez-vous des analystes et de l’environnement dans lequel ils souhaitent travailler ?
  3. Disposez-vous de reporting/outils en Business Intelligence (BI) et en self-service pour l’organisation ?
  4. Utilisez-vous l’analyse prédictive ?
  5. Êtes-vous une organisation gouvernée par le client ?
  6. Travaillez-vous avec une GRC avancée ?
En conclusion, il y a bien un chaudron rempli d’or au pied de l’arc-en-ciel, mais il vous faut savoir où vous vous situez à ce moment précis. Vous avez besoin d’une vision et d’une stratégie crédibles pour y arriver. Cela demandera du temps et l’engagement de la direction pour réussir, mais je suis fermement convaincu que si vous n’investissez pas dans ce domaine, vous serez laissés pour compte.  
Español
Big Data. ¿Hay un tesoro? 7 pasos hacia la excelencia impulsada por el Big Data. De Peter Zäll, Vicepresidente de Producto, Marketing y Análisis en Svenska Spel La junta directiva de Svenska Spel me pidió demostrar el valor comercial real del Big Data, los análisis y los sistemas de CRM.   El valor comercial. ¿Se imagina que su empresa consiguiese comprender cómo se puede entender a sus clientes, interactuar y dirigirse a ellos y desarrollarlos de la forma más efectiva mediante una comunicación personalizada y en tiempo real en todos los canales? Estimamos (al igual que Gartner) que los ingresos brutos de juego aumentarían entre el 3 y el 20 % respecto a los datos actuales. Aunque los resultados terminen siendo moderados, el ROI es evidente.  
  1. ¿Cuentan con los datos básicos (sin procesar) con los que trabajar?
¿A qué juegan, cuándo, dónde y con qué frecuencia, cuánto gastan, etc.? Desde 2014, en Svenska Spel también capturamos todos los datos de los clientes en las plataformas online, en los puntos de venta y en los VLT (por medio del registro obligatorio de todos los juegos de azar). Esto nos permite identificar a todos los clientes en todos los canales con una perspectiva completa, lo que resulta fundamental para que podamos entender su comportamiento real.  
  1. ¿Disponen de una buena plataforma de análisis para clasificar los datos? ¿Está funcionando?
  2. ¿Cuentan con los analistas y con el ambiente en el que estos desean trabajar?
  3. ¿Tienen los informes y las herramientas autónomas y de inteligencia comercial para la organización?
  4. ¿Trabajan con análisis predictivos?
  5. ¿Son una organización centrada en el cliente?
  6. ¿Están trabajando con un sistema de CRM avanzado?
En conclusión: hay un tesoro esperando al final del camino, pero antes necesitan saber dónde se encuentran en este momento. Necesitan una visión y una estrategia creíbles para llegar hasta ese punto. Llevará tiempo y será necesaria la implicación de los directivos para tener éxito; y creo firmemente que, si no invierten en esto, acabarán quedándose atrás.      
Deutsch
Big Data. Gibt es da einen Topf voller Gold...? In sieben Schritten zur von Big Data angetriebenen Qualität! Von Peter Zäll, VP Product, Marketing and Analytics bei Svenska Spel Der Vorstand bei Svenska Spel hat mich gebeten, den wirklichen Geschäftswert von Big Data, Analytik und CRM zu beweisen.   Der Geschäftswert. Stellen Sie sich vor, dass Sie herausfinden können, wie Sie Ihre Kunden durch eine personalisierte Echtzeit-Kommunikation in allen Kanälen am effizientesten verstehen, interagieren, erreichen und entwickeln können? Wir schätzen (genau wie Gartner) das inkrementelle GGR zwischen 3-20 % in GGR. Auch wenn Sie auf der niedrigen Seite sind, ist das ROI offensichtlich.  
  1. Haben Sie überhaupt die grundlegenden (rohen) Daten, um damit zu arbeiten?
Was, wann, wo und wie oft sie spielen, wie viel sie ausgeben, etc. Seit 2014 erfassen wir bei Svenska Spel auch alle Kundendaten im Onlinebereich, Einzelhandel und im VLT (durch die obligatorische Registrierung aller Glücksspiele). Dies gibt uns die Möglichkeit, alle Kunden in allen Kanälen in einer 360°-Ansicht zu identifizieren, was für uns wichtig ist, um das tatsächliche Verhalten unserer Kunden vollständig zu verstehen.  
  1. Haben Sie eine gute Analytics-Plattform, um die Daten zu sortieren? Und funktioniert sie auch?
  2. Haben Sie die Analysten und das Umfeld, in dem sie arbeiten möchten?
  3. Haben Sie BI- und Selbstbedienungsberichte bzw. -werkzeuge für das Unternehmen?
  4. Arbeiten Sie mit prädiktiver Analytik?
  5. Sind Sie ein kundenorientiertes Unternehmen?
  6. Arbeiten Sie mit einem modernen CRM?
Letztendlich ist da doch einen Topf voller Gold am Ende des Regenbogens, aber Sie müssen zuerst wissen, wo sie jetzt gerade stehen. Sie brauchen eine glaubwürdige Vision und Strategie, um dorthin zu gelangen. Es wird Zeit kosten und es benötigt das Engagement eines Top-Managements zum Erfolg, und es ist meine feste Überzeugung, dass Sie zurückfallen werden, wenn Sie hier nicht investieren.

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