Products & Solutions / Marketing Optimization

SAS® Marketing Optimization

Plan, prioritize and optimize communications to maximize profits

SAS Marketing Optimization helps you maximize economic outcomes by making the most of each individual customer communication. The solution enables you to increase marketing campaign ROI by determining the best offers for individual customers and delivering analytic insight into the implications of business constraints, such as channel capacity and contact policies.

Benefits

  • Improve marketing ROI.
  • Gain insight into the impact of changes.
  • Enhance contact strategy.

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Features

  • Optimization formulation
  • User interface
  • Scenario analysis
  • Contact strategy
  • Reporting and analysis

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" It is extremely important for us to partner with a trusted vendor, such as SAS, to turn raw data into an intelligent tool for reducing credit risk and increasing revenue by selling new products to existing and potential customers."

—Daniel Chong

Director of Marketing

PrimeCredit

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Sensitivity analysis helps you maximize ROI and limit opportunity costs.


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How SAS® Is Different

Built on proven, award-winning technology, SAS High-Performance Marketing Optimization combines the technology, methodology and industry expertise needed to optimize your customer communications. And it’s the first marketing solution to operate in conjunction with the power of SAS High-Performance Analytics to enable:

  • Faster, more detailed optimization of massive volumes of customer data, using true mathematical optimization versus simple rules-based analysis.
  • Quick solutions to previously unsolvable, complex optimization challenges.
  • Optimizations run against the entire set of customer data, not just a sample or control group.
  • Seamless integration with SAS High-Performance Analytics – massive customer data is sent out to the appliance, distributed, optimized and returned in an easy and efficient fashion.

In addition, only SAS Marketing Optimization provides:

  • Increased marketing workflow efficiencies for greater time, cost and resource savings.
  • User-defined constraint modeling.
  • Scenario, sensitivity and feasibility analyses.
  • Easy integration with an industry-leading marketing automation platform.

Benefits

  • Improve marketing ROI. Targeting effectively means higher response rates, improved channel effectiveness and reduced spending. It also means fewer deleted e-mails and unwanted direct mail solicitations. Segmentation and rules-based approaches to prioritizing marketing offers will not achieve the same results as this math-based approach.
  • Gain insight into the impact of changes. Rather than relying on instinct, SAS Marketing Optimization gives you a quantitative prediction about the impact of making changes to constraints such as budget, contact policy and more. You can easily create and modify what-if scenarios to see the increase in revenue if the campaign budget is increased by some percentage – or, to see the impact on customer lifetime value with higher contact frequency.
  • Enhance contact strategy. Optimize across complex contact policies to avoid oversaturating customers and violating corporate governance requirements. Eliminate uncoordinated and conflicting communications, and incorporate relevant relationship factors into the optimization – such as customer risk, advertising exposure and householding – to ensure that valuable customers receive the best possible set of communications across every channel.

Features

Optimization formulation
  • Maximize profit, revenue, account balance and more; minimize marketing cost; and achieve sales volume goals using optimization formulation to account for:
    • Budget, contact policies and resource consumption.
    • Channel availability for store, branch, call center, direct mail, e-mail, mobile or other channels.
    • Customer-level attributes, such as consumer credit scores or recent purchase amounts.
    • Desired minimum or maximum cell sizes for any campaign, offer or offer combination.
    • Nearly any custom customer-level criteria, such as "total revenues greater than or equal to $25 million," or "average portfolio risk score greater than or equal to 680."
User interface
  • Navigate easily through the optimization process with an interface that lets you:
    • Use wizards for frequent tasks and for integrating with SAS Marketing Automation.
    • Reuse existing work.
    • Hide or expose advanced optimization functions to support different users' needs.
Scenario analysis
  • Use scenario analysis to determine impact of each constraint on the overall objective as you:
    • Optimize multiple scenarios, then review and compare outputs.
    • Run different scenarios based on constraints and optimization objectives, contact policy and offer economics.
    • Send the optimal solution directly to the campaign execution system.
Contact strategy
  • Over- or under-contacting customers can affect loyalty, response rates and profit. This easy-to-use tool lets you:
    • Specify how many offers to assign each customer or household across the planning horizon or rolling time period.
    • Specify number of offers from a group or subgroup (e.g., make at most two cross-sell offers through e-mail or at most one rebate offer per brand).
    • Specify blocking policies (e.g., if you make Offer A, don't make Offer B for three weeks).
Reporting and analysis
  • Prebuilt reports include:
    • Offer Summary reports and graphs showing total costs, total profit and other metrics by offer, product, channel, time period, campaign, offer group or offer subgroup.
    • Optimal results by offer, product, channel, time period, campaign, offer group or offer subgroup.
    • Visual Sensitivity analysis for all constraints.
    • Range Analysis graph when two objectives are defined.
  • Collaborative capabilities let you publish or e-mail reports of competing scenarios before execution.
  • OLAP cubes, which are automatically created based on input data and results of scenarios, enable detailed analysis of results before execution.
  • Rich reports compare differing objectives within a scenario and show comparisons across scenarios to reflect impact on various counts and critical measures.

Screenshots

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Sensitivity analysis helps you maximize ROI and limit opportunity costs.

This screenshot shows a telecommunications cross-sell project in SAS Marketing Optimization with a sensitivity analysis graph displayed. This graph shows that as you approach a certain constraint limit on overall budget, profit levels off. This type of information helps the marketers determine proper constraints to maximize ROI and limit opportunity costs.

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Reporting capabilities show you multiple views of a project.

Multiple views of a project are available through the reporting and graphics capabilities in SAS® Marketing Optimization. This view shows a simple comparison between two offers.

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Reporting capabilities show you multiple views of a project.

Multiple views of a project are available through the reporting and graphics capabilities in SAS® Marketing Optimization. This report shows a summary of expected profit for an optimized scenario.

View Screenshot

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Easily define alternate scenarios.

This screenshot shows a telecommunications cross-sell project in SAS Marketing Optimization with 5 scenario steps.  SAS Marketing Optimization allows a business user to take campaign data, apply suppressions and constraints, and optimize contact policies to ensure the highest possible ROI per campaign.

View Screenshot

System Requirements

Operating systems
  • HP-UX Itanium: HP-UX 11iv2 (11.23), 11iv3 (11.31)
  • HP-UX PA-RISC: HP-UX 11iv2 (11.23), 11iv3 (11.31)
  • IBM AIX
  • Linux
  • Microsoft Windows 64-bit editions
  • Sun Solaris
Clients
  • Microsoft Windows
Application servers
  • Oracle WebLogic
  • IBM WebSphere
  • JBoss
Required software

SAS Marketing Optimization ships with all the required server-side software. SAS Information Delivery Portal and SAS Web Report Studio deployments (part of the SAS Marketing Optimization solution) require an application server. Scheduling software is required to schedule optimization scenarios to run at a later time. Both Platform LSF and the OS AT scheduler are supported.

Optional software

SAS Marketing Optimization is designed to use predictive models of customer response, economic valuation models of customer profitability and marketing costs, and the results of design of experiments (DOE) tests on offers and treatments. SAS products that provide or facilitate these capabilities are SAS® Enterprise Miner™SAS/QC® and SAS Activity-Based Management.

SAS Marketing Automation provides campaign management and execution capabilities to complete the marketing communication process chain. Integration with Microsoft Office (for reporting and analysis) requires Microsoft Office 2000 or later.

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