Predictive Analytics in Marketing & Retailings

Location Intelligence: the Benefits of Adding The “Where” Factor to Retail

Directly connect to enterprise

applications

map multiple and large-

scale datasets

Apply spatial toolsets

Customized data

visualization & reporting

Innovative location

intelligence solutions

for superior business analytics

Overview

2

Galigeo • Founded in 2001• Offices:• New York• Paris• Brussels

Market Partners• SAP Business Objects• IBM Cognos• Esri• Microsoft• Navteq

Clients• 50,000 users• Selected customers:• Heineken• European Commission• Carrefour• Autodesk• Total

The Galigeo Value Proposition – Delivering the “Where” Factor

For Business Users For IT

(Source: Université Laval)

DB

Level of Aggregation

Nature of Data

Spatial

Non Spatial

Non Aggregated Aggregated

GIS

BI

Geo BI

Business Intelligence

• Transactional• Operational• Analytical• Aggregated

Data Visualization

• Charts• Graphs• Plots• Maps

Geospatial Analysis

• GIS• SOLAP• Maps

Location Intelligence

What is Location Intelligence?

Pro-analytics culture Build the infrastructure

Test and learn

Making Location Intelligence successful in an organization

Source: Bloomberg Businessweek Research Services , May 2011

72% of “very effective” companies use business reporting, KPI’s and dashboards

71% of “very effective” companies employ forecasting tools

46% of “very effective” companies use simulations and scenario development

Easy to access data

Deploy technology widely

Practice strong data governance

3 best practices to de-risk the implementation of Location Intelligence

1. Proof of Value (Concept) Approach Brief discovery phase

Learning via a “demonstration environment”

Assess software to meet the company’s objectives

2 . Report Design Project For high priority reports identify data sources, SOR’s,

query & report structures Determine value-added Location Intelligence visualization

elements Develop report wireframes for validation

3. Implementation Approach Repeatable, structured implementation methodology Supports install, start-up, Admin and User training and

initial report development Saves time and decreases risk for the customer

Project Mobilization

Project Launch

Confirm Server environments & Software for loading

Design Solution environment

Develop initial Report Designs

Finalize in scope BI and GIS architectures

Stabilize solution environment

Configure Solution

Implement BI Connectors

Implement GIS connectors

Prepare Training Materials

Integration Testing

Performance Tuning

BI Validation and Traceability

User Acceptance Testing

Finalize Production Environment

Perform End-User Training

Execute Cut-over Plan

GO LIVE!

Production Support

Quality Assessment

Post Go Live Review

Performance Tuning

Project and Program ManagementRisk and Quality Management

Planning DefinitionDevelop-

mentQA

& TestDeployment Support

Knowledge Transfer

A

• Finalize contracts and SOW

• Translate priorities into the key performance indicators

• Locate and assess all BI data sources

• Confirm GIS Source

DeployDevelopDesignPlanPrepare

• Facilitate a user visioning session

• Identify Use Case and reports

• Define high level requirements

• Determine target data, report outputs and user group

• Identify impacted processes

• Map the desired use cases & processes

• Design the standard report structures and parameters

• Define the report user group(s) and delivery options

• Determine report schedule/delivery requirements

• Build the reports based on design and BI sources

• Review outputs with user groups and validate

• Build standard visualization formats

• Train Galigeo administrator on the LI platform

• Launch initial standard reports and visualization layers

• Finalize resource requirements

B

• Technical Consultant

• Sales Executive

• Business Consultant

• Business Consultant

• Technical Consultant

• Business Consultant

• Technical Consultant

• Business Consultant

• Technical Consultant

• Business Consultant

• Technical Consultant

Estimated Timeframe 1 Day 1-2 Days 1-2 Days 1-3 Weeks 1-2 Days

Key Activities • Determine Proof of Value objectives

• Identify specific Use Case for testing

• Determine target data, report outputs and user group

• Identify macro-level business processes impacted

• Develop PoVevaluation criteria

• Identify data sources and access rights

• Determine need for configuration changes to Galigeo data connectors

• Determine any ETL requirements

• Validate the ability to access and use the desired data

• Build data mart (if required)

• ETL Data (if required)

• Load Galigeo software on servers

• Load GIS software on server

• Stabilize and perform pre-launch tests

• Connect to BI data sources

• Run PoV

• Develop and run reports to support identified Use Case

• Organize results

• Develop Read-Out and Executive Presentation

Key Deliverables

• PoV Objectives

• PoV Evaluation Criteria

• PoV Go/No Go decision and sign-off

• Stabilized Galigeo PoV solution

• PoV Launch sign-off

• Reports/Map Views & Location Analysis

• Evaluation Use Case and PoV Objectives

• Presentation to Managers

• Presentation to Executive Committee

A. PoV DefinitionB. Preliminary

Internal AssessmentC. Install Galigeo

PoV Sandbox D. Run PoV

E. Summarize Value Outcomes

1. Why, what & “Where” factors, such as the regional demographic variables or location of competitor outlets, are impacting current operational performance.

5. Plan, manage and optimize the distribution and retail system around OEM’s, suppliers, Distribution Centers and Store locations.

2. Determine the optimum structure of retail territories and market by understanding coverage, density and distribution of prospect and

customers.

4. Gaining improved understanding of “where” the location of existing assets and inventories reside, in order to better manage capital and logistics

6. Understand how the patterns of incidents or outcomes from events may impact supply chains such as from severe storms or other force majeure challenges.

3. Increase understanding of trends, relationships, and behavior of customers located in a trade area for more precise and effective marketing activities.

Reveals relationships, trends, dependencies, and patterns that my have been undetectable in conventional reports and improves decision-making

How leading retailers benefit from Location Analytics

Galigeo’s value for the retail industry

7

Sales/Business Department:

A real time spatial visualization of store performances Predictive analysis of where potential customers are

located, consumer trends, change of location (leisure, work, events…)

New site locations in high potential areas Territory Management:

Efficiency of customer visits for sales force Prioritization list of potential customers by locations The efficiency of addressing sales force to similar

customer types/same sector/same location.

Marketing Department:

Spatial visualization of prospects/current customers, supporting distribution of marketing materials

Address specific marketing promotions to customers located within target radius from location (i.e. inactive the last month/week, customers behavior of X products, loyalty card type, demographic/social changes, etc.).

The quantity/cost of marketing materials sent out/left-overs/new orders for specific target groups/regions

Evaluate the results from these marketing campaigns (the return of customers to shop in the territory)

IT Department (BI/GIS): Avoid time-consuming work on extracting, transferring, creation of maps for all types of data (events,

factors, time, locations etc.) Get the multidimensional view of all data with direct access to BI/CRM system through the map) Bi-directional connector to BI/CRM and Map (GIS) so that changes in data (BI/CRM) will instantly

update the map AND inserted/changes of data in map will update data in BI/CRM system. Avoid the risks and hassles of duplicating data or creating multiple data stores and losing linkage to

Systems of Record. Possible to automatically send/receive daily/weakly geo-business reports to the respective

departments/users

Case Study: Global RetailerPredictive Analytics in Marketing & Retailing

• Objectives for the Location Intelligence program:1. Guide site selection and expansion of the retail presence across

countries- defines potential markets and where to set-up new stores 2. Monitor store performance against forecasted sales –target vs.

actuals3. Improve direct marketing efforts and return on investment- campaigns

and ROI

Case Study: Geo-Marketing and Predictive Analytics at a global retailer

• World leader in distribution-15,000 stores with four formats hyper-markets, supermarkets, hard-discount stores, and convenience stores.

• 33 countries, 475,000+ employees, 2011 Revenues of 107 billion euros

• Integrates rich spatial data (GIS) and business intelligence data into a LI platform to support predictive analysis

• Multiple spatial data combined with an intelligent map viewer• Flexible but secure: visibility, data sources, user groups; report types • Easy to use for non literate GIS users

How the client achieves their business goals & objectives with Galigeo’s solution

Document confidentiel

• Demographics & profiles• Vertical market-specific

• Monitors Target vs. Actual• Analyzes and Reports

Marketing

Data Sets• CRM• Data mining

Actions• Campaigns• Customer acquisition

Site Selection

Data Sets• Demographics & profiles• Vertical market-specific

Actions• Defines potential market• Defines where to set up

new stores

Store Performance

Data Sets• Performance Data / BI• Store, Customers, Products

Actions• Monitors Target vs. Actual• Analyzes and Reports

Gain a better understanding of the territory

• The location of existing assets and inventories in order to manage them more effectively.

• The location proximity and patterns associated with incidents or events that impact upon resource allocation. Why and what external factors, such as the regional demographic variables

or location of competitor outlets, are impacting current operational performance at a detailed level.

The optimum way to structure sales territories and strategies through a clearer under-standing of the density and distribution of clients within a territory.

To understand the trends, relationships, and behavior of customers located in a trade area to support precise and effective marketing activity.

Objective #1: Site Selection- Measuring the potential of the Retail Trade Area

The analyst gets the accurate location of the opportunity

Objective #1: Site Selection- Measuring the potential of the Retail Trade Area

Widgets to measure potential store square footage via satellite view

Objective #1: Site Selection- Enter Potential New Store Criteria to Model Store Performance

Objective #1: Site Selection- Measuring the potential of the Retail Trade Area

Travel radius to measure the potential of the trade area which is a combination of drive time (or walk time) with demographics.

Benefit: Adds proximity context to scenario planning models and shows the outcomes in a visual manner that makes it easy to grasp the implications

Site Selection: Interrogating additional data leads to refinement of the RTA boundaries

RTA is taking into account the potential, competition, cannibalization with other stores

Benefits: Analysis is informed by business data presented in enhanced visualization layers, and supports improved decision making.

More mature site planning teams collaborating with store operations and marketing can spin off predictive analytics loops to forecast business outcomes early in the market development effort

How the client achieves their business goals & objectives with Galigeo’s solution

• Demographics & profiles• Vertical market-specific

• Monitors Target vs. Actual• Analyzes and Reports

Marketing

Data Sets• CRM• Data mining

Actions• Campaigns• Customer acquisition

Site Selection

Data Sets• Demographics & profiles• Vertical market-specific

Actions• Defines potential market• Defines where to set up

new stores

Store Performance

Data Sets• Performance Data / BI• Store, Customers, Products

Actions• Monitors Target vs. Actual• Analyzes and Reports

Gain a better understanding of the territory

• Why and what external factors, such as the regional demographic variables or location of competitor outlets, are impacting current operational performance at a detailed level.

• The optimum way to structure sales territories and strategies through a clearer under-standing of the density and distribution of clients within a territory. The location of existing assets and inventories in order to manage them more

effectively. The location proximity and patterns associated with incidents or events that

impact upon resource allocation. To understand the trends, relationships, and behavior of customers located in

a trade area to support precise and effective marketing activity.

Objective #2: Store Performance- BI “reports” moved from crosstabs to maps bring “Where” to life

Benefit: Extends existing BI functional richness where client does not have pre-existing GIS capability.

Dynamically blends powerful GIS spatial context with business rich data to deliver easy to understand information

Store Performance: Location Intelligence with visualization rapidly synthesizes combinations

Benefit: Reveals relationships, trends, dependencies, and patterns that would have been undetectable in conventional reports.

• Measures of competition and customer density

• Dynamic geographic sales information needed to efficiently respond to the changing nature of customers

How the client achieves their business goals & objectives with Galigeo’s solution

• Demographics & profiles• Vertical market-specific

• Monitors Target vs. Actual• Analyzes and Reports

Marketing

Data Sets• CRM• Data mining

Actions• Campaigns• Customer acquisition

Site Selection

Data Sets• Demographics & profiles• Vertical market-specific

Actions• Defines potential market• Defines where to set up

new stores

Store Performance

Data Sets• Performance Data / BI• Store, Customers, Products

Actions• Monitors Target vs. Actual• Analyzes and Reports

Gain a better understanding of the territory

To understand the trends, relationships, and behavior of customers located in a trade area to support precise and effective marketing activity.

• Why and what external factors, such as the regional demographic variables or location of competitor outlets, are impacting current operational performance at a detailed level.

• The location of existing assets and inventories in order to manage them more effectively.

• The location proximity and patterns associated with incidents or events that impact upon resource allocation.

• The optimum way to structure sales territories and strategies through a clearer under-standing of the density and distribution of clients within a territory.

Objective #3: Market Action- Leverage Location Intelligence to predict marketing campaign outcomes

Benefit: Targets and aligns sales and spend marketing budget where it is easy to reach the most customers

1. Selection of the trade area to define where mailings have to be distributed

2. Apply a management rule; Consolidation, Destabilization or Conquest

3. Optimize direct marketing actions, such as distributing weekly circulars according to the store strategy

Results

1. Tools in the hands of decision-makers to respond to changing business dynamicsThis Global Retailer has implemented a bottom-up approach to GeoMarketing by providing store managers with the dynamic geographic sales information needed to efficiently respond to the changing nature of customers

2. Added the "where" factor to its analysis methodologyThe GeoMarketing platform provided the capabilities that the Global Retailer required to add the "where" factor to its business intelligence and CRM. By developing a bottom-up approach, Global Retailer has gained greater efficiency in responding to the changing spatial nature of customers behavior.

3. Enables new data sets to support outcomes based analysis and predictive modelingOffers the opportunity to integrate new data content directly into the database. This innovative functionality lets the operation level feed and enrich the database with information related to its store.

Implementing a Location Intelligence strategy; Traditional architecture vs Galigeo’s architecture

Enterprise Data Bases

BI Server

Reports

BI Platform GIS Platform

GIS Database

Map Server

Map Services

GIS Desktop

Manual ETL

Traditional Architecture

• Mapping of BI data; linking Geo-Spatial layers to various data types:

Transactional Operational Analytic Aggregated

• Avoiding duplication of data

• Security and access rights

• Seamless, bi-directional data exchange/update

How Galigeo’s Solution Solves the Problem

Enterprise Data Bases

BI Server

Reports

BI Platform GIS Platform

GIS Database

Map Server

Map Services

Galigeo’s Value Added Functionality• Thematics, historgrams, pie charts• Isochrone, spider charts, pop-up windows• Mini-maps, publishing to PDF/PNG• Advanced - Heatmap, Spatial Time slider, Geo

clustering

Geo-BI Interactive Map Viewer

GALIGEO Connector (API)

For more information www.galigeo.com

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