The likelihood of a customer making a purchase can be difficult to assess and quantify. Hybris Marketing now provides a framework with which a customer can be scored, e.g. “propensity to buy”, either using standard business rules or applying predictive techniques. The scores are available as parameters to create target groups and can be used for more efficient and optimised campaigns, run at the right time to the right customers with the right content.
Digital marketing and the target group of “one”
Recently, Gartner positioned SAP as a leader in its 2016 Magic Quadrant Report for Marketing Resource Management. Given the prioritisation of digital and real-time marketing in 2016, Hybris Marketing is seemingly well-placed to meet and address the associated challenges.
I’ve said it before: a key strength of Hybris is its ability to source information from a wide variety of sources, be they SAP or non-SAP, and connect it all in a logical way to build intelligence on individual customers, corporate accounts and channel partners. This data sits in a HANA database thus enabling it to be processed using fast advanced analytics. The result is a fusion of data and processing speed in a slick and easy to use application designed for the next generation of digital marketing.
Utilising detailed and granular insight on all customers, Hybris then makes it possible to create campaigns that are truly tailored to the individual rather than the “one size fits all”, mass-marketing target groups of old.
Who is going to buy, what are they going to buy and when?
Hybris Marketing comes with a host of “out of the box” functionality that does go a long way to providing the kind of capability a business needs to survive in a digital world. However, it also provides options for extending its capability to enhance its power to understand and even to predict customer behaviour.
An example of this is the use of Hybris Marketing to answer a simple but fundamental question: “who is going to buy, what are they going to buy and when?” You could say this is the most fundamental question there is in sales and marketing, and one that is difficult to answer accurately. Hybris Marketing has the capability to consider all attributes of a customer’s master data and transactional history. Historical sales data can be used to “train” predictive algorithms to know exactly which of these attributes contribute to propensity to buy. The results can be brought together into a simple score that quantifies for each customer what their likelihood of a purchase is at any time.
As the customer moves along the buying journey, this score may change and it could reach a threshold where the business may wish to take action to complete the sale. An example of how this might be done is provided below.
Example use case – automated campaigns in telecommunications services
A telecommunications business sells services via a wide range of packages across multiple global markets. Service packages exist over a set of pricing bands and can be modified to include or exclude certain optional components. Customers typically move between packages on an annual basis and also shop around for the best deals on the market.
In this scenario, Hybris Marketing would have a view of each customer, known as the “Golden Record”, and also their interactions with the telecoms business, which could be telephone calls, service calls, marketing campaign history, website visits, emails, social media interactions, previous sales, etc. All of this data could then be used to generate a measure of the likelihood that each customer would make a purchase, and could even be extended to incorporate information on the likely product of choice. Conversely, this could also be applied to calculate a likelihood of customer churn.
Using this score, the marketing team could set up an automated campaign that is triggered by a customer crossing a threshold into a state in which they are likely to make a purchase: remember, this could also be a sale for a competitor!
However, since the telecoms business would know exactly when the customer hit this threshold and was able to automatically trigger a campaign to market the best deals tailored to that customer (e.g. using the predictive product recommendation functionality also available in Hybris) they would have the upper hand over their competitors and be able to close that sale long before their rivals had the chance to act. Automated and predictive marketing campaign management, targeted to the individual!
The intelligence that Hybris Marketing brings to the customer’s journey can be integral to keeping one step ahead of the competition. With “out of the box” functionality it’s simple to showcase the potential it can offer to companies and understand what is possible when it comes to informing your customer's decision to buy.