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After this summer’s SAS European analyst event, I wrote that I came away less than convinced SAS was truly committed to the cloud, based largely on the fact that most other vendors are blowing their cloud trumpets much louder than SAS. It seemed developments in and around customer intelligence and its other products were higher priority to the company than its cloud strategy. However, after a recent update, I was left with no doubt that the cloud is important to SAS and that the company has a well–thought-through strategy based around two services that Ventana Research touched on earlier this year.

SAS provides a subscription-based service from its data centers so that users can access capabilities on demand through a variety of browsers. It also provides support for both private and public cloud deployments, which enable organizations to mix and match between on-premises and cloud-based. The multitenant architecture provides an organization the ability to revert to on-premises deployment. A subscriber portal lets organizations manage subscriptions to the service, manage authorized users, set up and configure the application, and monitor, audit and receive SLA reports about the service. A separate provider portal allows providers to manage their assets and tenants, manage contracts, billing and SLAs and provision integration with internal systems. Developers can use provided tools to build custom extensions and customize the applications. As it goes forward, SAS will provide an application marketplace, so that organizations can if they want share developments, further reducing the potential cost of building specific capabilities. As with all offerings from SAS, an exhaustive development program is planned for the next few years, which will see more options and capabilities being offered in the cloud.

With all the hype about the cloud, customers are still confused about differences between hosted services, software as a service and cloud computing. Nevertheless, cloud computing is one of six technology developments that Ventana Research has identified as having a major impact on organizations’ IT strategy – the other four being big data, mobility, collaboration, social media and analytics. Our research into the contact center in the cloud shows that organizations are increasingly looking to utilize contact center systems in the cloud to help provide customers with excellent experiences across multiple communication channels. It however also shows, as indeed does our research in customer analytics and contact center analytics, that companies are slower at adopting analytics than other business applications. Some of the underlying reasons are the cost and complexity of setting up and running on-premises analytics. Cloud-based services such as those offered by SAS are a way to help organizations address these issues. We recommend organizations looking to improve their customer-facing activities investigate how cloud-based computing and gaining faster insight to customer interactions can add value to their operations.

Regards,

Richard J. Snow

VP & Research Director

SAS is one of the largest and best-known independent vendors of BI and analytics. The company’s website shows  16 product lines, and product variations to match almost every business analytics requirement in any industry. One of its core products lines is Customer Intelligence, which I wrote about last year. Customer Intelligence consists of four main components: strategy and planning, information and analytics, orchestration and interaction, and customer experience – among all these interesting areas, only the last really indicates what the products do.

In this context, strategy and planning is about marketing: deciding which sales channels are likely to be most successful, managing marketing campaigns and using performance management to gain insight into how well marketing is performing. Information and analysis is about customer analytics – mapping customer profiles and segments to drive customer relationships, deriving customer value insights and performing event-triggered marketing. Orchestration and interaction is also about marketing, from a more operational perspective – campaign management, email and mobile marketing, optimizing communications with customers and real-time decision support to improve the outcomes of customer interactions. Customer experience focuses on analyzing online customer behavior to support better decision-making, using social media analytics to provide insights into what customers are posting on social media, and deploying Web analytics to analyze the use of the user organization’s website.

This is an interesting mix of products, and it supports two themes I have been seeing in key customer activities and part of my research agenda. The first is an evolving approach to marketing. Long gone are the days when organizations could afford to carry out mass marketing campaigns through direct mail. Instead we’re at the start of a time of more focused, personalized campaigns that are carried out through the new channels of customer choice, particularly email and smart phones. These approaches require organizations to gather more customer information and systems to create and deliver campaigns, which explains why SAS has integrated Assestlink’s marketing operations management suite into its customer intelligence portfolio.

The second theme, which no one can have missed, is the increased use of the Web to find information, purchase products and services, and gain support, and the increased use of social media to find information and support and to comment and complain. Marketing through each of these channels requires more detailed insight into customer behavior so that organizations can not only improve customer service through these channels but also make improvements to the overall customer experience. To support it, SAS has developed its social conversation center, which provides insight into what customers are saying on social media, as well as sentiment analysis and customer influencer scores.

At a time when customer behaviors are changing and it is hard to find new customers and gain maximum business benefit from existing customers, customer intelligence is more important than ever for organizations. SAS is wise to promote these two areas, which along with new services to support easier and quicker implementation of its products enhance its prospects for 2012. The use of customer analytics that we researched and predictive analytics are key parts of what SAS offers and help enable customer intelligence.

How effective are your marketing campaigns and your use of social media – indeed, how well do you know your customers? Please tell us more and collaborate with me on customer intelligence.

Regards,

Richard Snow – VP & Research Director

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