2.3 Statistical Modeling for Business Anal 2.6 Regression Modeling for Inferential Statistics 80 2.7 Business Reporting 98 2.8 Data Visualization 101 2.9 Different Types of Charts and Graphs 106 2.10 The Emergence of Visual Analytics 110 2.11 Information Dashboards 117 XM Attracts and Engages a onsumers with Data-Driven its a satellite race and a wide range which began today has with aut OPENING VIGNETTE: SiriusXM Attracts ar New Generation of Radio Consumers with Marketing SiriusXM Radio is a satellite radio powerhouse, the largest radio co $3.8 billion in annual revenues and a wide ran talk, and entertainment stations. The company, which began 50,000 subscribers, grew to 18.8 million subscribers in 2009, and to Much of SiriusXM's growth to date is rooted in creative arrange manufacturers; today, nearly 709% of new cars are SiriusXM-enabled. Yet the company's reach has extended far beyond car radios in the United States to a wo tates to a worldwide presence on the Internet, on smartphones and through other services and distribution channels, including SONOS, JetBlue, and Dish. house, the largest radio company in the world with al revenues and a wide range of hugely popular music, sports, news, The company, which began broadcasting in 2001 with lion subscribers in 2009, and today has nearly 29 million growth to date is rooted in creative arrangements with automobile Business Challenge Despite these remarkable successes, over the past few years changing customer demo- graphics, changing technology, and a changing competitive landscape have posed a new series of business challenges and opportunities for SiriusXM! Here are some notable ones: As its market penetration among new cars increased, the demographics of the buy- ers changed, skewing younger, with less discretionary income. How could SiriusXM reach this new demographic . As new cars became used cars and changed hands, how could SiriusXM identify. engage, and convert second owners to paying customers? . With its acquisition of the connected vehicle business from Agerothe leading pro- vider of telematics in the U.S. car market-SiriusXM gained the ability to deliver its service via both satellite and wireless networks. How could it successfully use this acquisition to capture new revenue streams? Site Chapter 2 . Descriptive Analytics I: Nature of Data, Statistical Modeling, and Visualization Proposed Solution: Shifting the Vision toward Data-Driven Marketing SiriusXM recognized that to address these challenges it would need to become a high- performance, data-driven marketing organization. The company began making that shift by establishing three fundamental tenets. First, personalized interactions not mass marketing-would rule the day. The com pany quickly understood that to conduct more personalized marketing, it would have to draw on past history and interactions, as well as on a keen understanding of the con- sumer's place in the subscription life cycle. Second, to gain that understanding information technology (IT) and its external tech- nology partners would need the ability to deliver integrated data, advanced analytics, integrated marketing platforms, and multichannel delivery systems And third, the company could not achieve its business goals without an integrated and consistent point of view across the company. Most important, the technology and business sides of SiriusXM would have to become true partners to best address the chal- lenges involved in becoming a high-performance marketing organization that draws on data-driven insights to speak directly with consumers in strikingly relevant ways. Those data-driven insights, for example, would enable the company to differentiate between consumers, owners, drivers, listeners and account holders. The insights would help SiriusXM understand what other vehicles and services are part of each household and to create new opportunities for engagement. In addition, by constructing a coherent and reliable 300 degree view of all its consumers. SinusXM could ensure that all messaging in all cam paigns and interactions would be tailored, relevant, and consistent across all channels. The important bonus is that more tailored and effective marketing is typically more cost-efficient. SOM Implementation: Creating and Following the Path to High-Performance Marketing At the time of its decision to become a high-performance marketing company, SiriusXM was working with a third-party marketing platform that did not have the capacity to sup- port SiriusXM's ambitions. The company then made an important, forward-thinking deci sion to bring its marketing capabilities in-house and then carefully plotted out what it would need to do to make the transition successfully. 1. Improve data cleanliness through improved master data management and governance Although the company was understandably impatient to put ideas into action, data hygiene was a necessary first step to creating a reliable window into consumer behavior 2. Bring marketing analytics in-house and expand the data warehouse to enable scale and fully support integrated marketing analytics, 3. Develop new segmentation and scoring models to run in-database, eliminating latency and data duplication 4. Extend the integrated data warehouse to include marketing data and scoring, leveraging in-database analytics. 5. Adopt a marketing platform for campaign development, 6. Bring all that capability together to deliver real-time offer management across all marketing channels: call center, mobile, Web, and in-app. Completing those steps meant finding the right technology partner. SiriusXM chose Teradata because its strengths were a strong match for the project and company. Teradata offered the ability to: Consolidate data sources with an integrated data warehouse (IDW), advanced analytics, and powerful marketing applications. 7 h 12 5. What were 6. Can you thi benefit from 2 smoothly and swiftly along its road by implementing its Provide open any to quickly and reliably opera action Manager-part of the Teradata anels. And, SiriusXM . Descriptive Analytics and Visualization Date Statistical Modeling an Nature Solve data latency issues. ses and applications. Significantly reduce darovement across multiple databases and anot biles for all of the marketing areas. Seamlessly interact with applications and modules for all of the marken ning campaigns and analytics in-database Scale and perform at very high levels for run stomers Conduct ra n unkcations with custom the via the cloud or on-premise Provide operational support o This partnership has enabled SiriusXM to move s ansformational, 5-year process. After trap, and the company is now in the midst of a A NT cernance process, S gan by impleme establishing its strony data Integrated Data Warehouse, which allowed the company tionalize insights throughout the organization Next, the company implemented Customer Interco Integrated Marketing Cloud, which enables reu real-time, dialog-based customer interact across the full spectrum of dial and traditional communication channels. And si will incorporate the Teradata Digital Messaging Center le Together, the suite of capabilities will allow Suns sinu XM to handle direct communi tions across multiple channels. This evolution will enable etme ollers, marketing sages and recommendations based on previous behavior. In addition to the mining how they execute and optimize outbound marke activities, Siri is also taking control of their internal marketing operations with implementation of Marketing Resource Management also part of the Teradata Intera Marketing Cloud. The solution will allow SiriusXM to streamline workflow, optimize keting resources, and drive efficiency through every penny of their marketing budget What We C Striving to thri a new and im effectively con is the case in ligently sensir messages and to create and lation of cust to optimize conducted by and transmiti data-driven collection, ir played a cris analytics str regardless o marketing mes outbound marketing he Teradata Integrated Sources Quin teradata.com Success story resource Cente 2.2 Results: Reaping the Benefits As the company continues its evolution into a high-performance marketing Organi already SiriusXM is benefiting from its thoughtfully executed strategy. Household consumer insights and a complete view of marketing touch strategy with each consume enable SiriusXM to create more targeted offers at the household, consumer, and des levels By bringing the data and marketing analytics capabilities in-house, SiriusXy achieved the following: Campaign results in near real-time rather than 4 days, resulting in massive reductions in cycle times for campaigns and the analysts that support them. . Closed loop visibility allowing the analysts to support multistage dialogs and in campaign modifications to increase campaign effectiveness Real-time modeling and scoring to increase marketing intelligence and sharpen cam paign offers and responses at the speed of their business Finally, SiriusXM's experience has reinforced the idea that high-performance marker ing is a constantly evolving concept. The company has implemented both processes the technology that give it the capacity for continued and flexible growth. Data is the fact, it car produce could exis using exp ever, thos challenge most valu better un Dat compute hence nc continue that defi these ch it more discover via sur day dat network volum typical QUESTIONS FOR THE OPENING VIGNETTE 1. What does SiriusXM do? In what type of market does it conduct its business? 2. What were the challenges? Comment on both technology and data-related challenges. 3. What were the proposed solutions 4. How did they implement the proposed solutions? Did they face any implem challenges implementation 57 Chapter 2 Descriptive Analytics I: Nature of Data, Statistical Modeling, and Visualization 5. What were the results and benefits? Were they worth the effort/investment? 6. Can you think of other companies facing similar challenges that can potentially benefit from similar data-driven marketing solutions? What We Can Learn from This Vignette Striving to thrive in a fast-changing competitive industry, SiriusXM realized the need for a new and improved marketing infrastructure (one that relies on data and analytics) to effectively communicate the value proposition to its existing and potential customers. As is the case in any industry, in entertainment, success or mere survival depends on intel- ligently sensing the changing trends (likes and dislikes and putting together the right In win new customers while retaining the existing ones. The key is mions that resonate with the target popu- mocne