Predictive Analytics DemoScript

DEMO SCRIPT
Retail
Reward Customer Loyalty
with SAP Predictive Analysis
and SAP Business Objects
Dashboards
DOCUMENT CLASSIFICATION: INTERNAL AND PARTNER
General Information:
Authors:
Date Last Updated:
Industry Name Retail

Application SAP Predictive Analysis
Country or Global - Global
I817248
I304624
April 2014
SAP AG 2014 / INTERNAL SCENARIO ID: 8860
Page 1
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SAP AG 2014 / INTERNAL SCENARIO ID: 8860
Page 2
TABLE OF CONTENTS
1.
2.
Demo Script Overview .........................................................................................................4

1.1.
Demo Description .................................................................................................................................... 4
1.2.
Intended audience ................................................................................................................................... 4
1.3.
Protagonists ............................................................................................................................................ 4
1.4
Key Messages and Value Proposition ..................................................................................................... 4
Technical Requirements ......................................................................................................5

2.1.
Prerequisites/Restrictions........................................................................................................................ 5
2.2.
System Access Information ..................................................................................................................... 5
2.3.
3.
2.2.1.
System Landscape ..................................................................................................................... 5
2.2.2.
System Access ........................................................................................................................... 5
2.2.3.
Users .......................................................................................................................................... 5
2.2.4.
Languages Supported ................................................................................................................ 6
Release for Used Components ............................................................................................................... 6
Demo Script .........................................................................................................................7

3.1.
Story Flow ............................................................................................................................................... 7
3.2
Step-By Step Guide................................................................................................................................. 8
SAP AG 2014 / SCENARIO ID: 8860

Page 3
DEMO SCRIPT OVERVIEW

1.1. DEMO DESCRIPTION
This demo shows how a national retailer is able to quickly evaluate customer and sales data to retain key customers by
rewarding their loyalty. The retailer uses SAP Predictive Analysis to create customer segmentations, identify the most
loyal and profitable customers, and develop targeted promotions.
.
1.2. INTENDED AUDIENCE
Please select for which audience this demo script is intended by selecting the appropriate boxes below.
Retailers
CPG
1.3. PROTAGONISTS
Marketing Analyst/Managers
1.4. KEY MESSAGES AND VALUE PROPOSITION

SAP Predictive Analysis:
Determine hidden purchase relationships between products
Optimize customer segmentation
Visualize large amounts of data quickly
Improve up-sell and cross-sell success with stronger relationship definition
Identify traffic drivers and affinity products from transaction history
OTHER APPLICATIONS: INVENTORY MANAGEMENT, DISCOUNTING, PROMOTIONAL SPEND,
STORE LAYOUT

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TECHNICAL REQUIREMENTS
2.1 PREREQUISITES/RESTRICTIONS
The software licensing requirements are needed to implement this solution are:
SAP BusinessObjects Enterprise 4.0
SAP BusinessObjects Dashboard Design (Xcelsius)
SAP BusinessObjects Web Intelligence
SAP Predictive Analysis
SAP JAM
Please download and install the latest SAP BusinessObjects Mobile App:
Launch App Store and search SAP BusinessObjects Mobile and you will see the App
Install the app
2.2
SYSTEM ACCESS INFORMATION
2.2.1
System Landscape
SAP Demo Cloud
System Landscape, this Process is built in
2.2.2
System Access
This demo is available from the SAP Demo Cloud, in the following showrooms:
-
HANA-BI-EIM regional showroom (edition 2014 V1 onwards).

BI-EIM Lean showrooms
Green Phoenix (CSA)
For specific details on how to connect to the showrooms above (including mobile setup), please refer to the
documentation: SAP Demo store, demo 9169:
https://www.sapdemostore.com/scenario/9169
For SAP Demo cloud generic information (access, registering, set up SDC connector, etc.) please go to the SAP Demo
Store documentation How to Access the SAP Demo Cloud?
https://www.sapdemostore.com/scenario/8024

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2.2.3
Languages Supported
Please select the standard languages in which this demo is available (i.e. translated into).
English
German
French
Spanish
Portuguese
Japanese
Simplified Chinese
Korean
2.3 RELEASE FOR USED COMPONENTS
Software Component
SAP Predictive Analysis
SAP BusinessObjects Mobile
Release
Support Pack
1.0.9
4.4

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DEMO SCRIPT
3.1 STORY
1) It is close to quarter end, Jack Lee, Operations Director at BestRun Retailer, notices from his Dashboard that
sales will not meet target would like to run some promotions to increase sales. They would like to identify the
most profitable customers and their purchase preference, in order to reward their loyalty and promote crosssell opportunities.
2) Lead Analyst, Mike starts with high level visualization of where their customers are and their demographic
information.
3) To gain more insight, Mike uses Clustering to perform customer segmentation. He discovers a small cluster of
customers that had made relatively high amount and item in purchases. They are also younger, more affluent
customers.
4) Mike zooms in this specific group of customers, he also notices that most of them made last purchase only 1
week ago. This looks like the loyal, profitable customers they want to target. Mike also discovers that these
customers make purchases online.
5) Mike exports the segmentation result to a CSV file.
6) Mike now needs to figure out what items can be offered in the promotion to this group of customers. He
conducts an association run for market analysis. Mike concludes that focusing on the cross-sell relationship
between these items would lead to the a win-win situation for both Best Run and its loyal customers.
7) Best Run sends special promotional online offers to this group of customers. The promotion is a success,
along with other actions that management has taken, Best Run closes out the quarter above target. In
addition, due to analysis done in SAP Predictive Analysis, Best Run is now able to track their top customers s
KPI on a ongoing basis. Best Run is also able to create individual view of their most loyal customers activities
and metrics. This dashboard can also viewed on a mobile device. Team members can collaborate using SAP
Jam to quickly create personalized offers.

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STEP-BY STEP GUIDE
3.2
3.2.1
Install SAP BusinessObjects Mobile App on iPad
Step 1.0 Download and install SAP BusinessObjects Mobile App on iPad
What To Do
What to Say (include necessary Screenshots)
Launch SAP BusinessObjects Mobile app on

iPad and connect to the BI platform, refer to 2.1.
User name: smithjo
Password: welcome

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3.2.2 Demo
What to say
It is close to quarter end, It is close to quarter end, Jack Lee, Operations Director at Best Run, reviews his Sales Performance Dashboard. He
notices that Total Sales is not going to meet target.
Though HANA is not directly used for tstoring the back end data displayed on these dashboard, you can easily talk here about what HANA can bring
to your customers/prospects
When used as a transactional or Datawarehousing platform, SAP HANA provides on-the-fly analysis for all combinations of data. You can make
immediate decisions using real-time operational analytics whether the data comes from your SAP applications, third-party solutions, or custom
applications.
Big Data Warehousing:
SAP HANA unleashes the potential of Big Data with its ability to handle large volumes and a variety of structured and unstructured data in real-time.
Build a data warehouse integrated with Hadoop or easily migrate your existing SAP NetWeaver Business Warehouse (BW) to SAP HANA and make
decisions within the window of opportunity.
What To Do
Save swf files customer
loyalty.swf and customer
Analtycis.swf to your local drive.

Jack is able to view metrics such as sales, inventory, top products on the Sales Performance dashboard. This
particular dashboard is develped in LAVA (Lightweighted Applied Visual Analytics), the newest approach to
analytics visualization developed by SAP. It is simple and systematic. Jack is able to view a secondary chart by
tapping on the * when he would like to get additional information.
First open the customer Loyalty

swf file.
Present the dashboard, first
showcase its functionality such
as displaying a secondary
chart.
Click on the * next to Promo
Sales

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Then point at the

sign next
to Total Sales chart. And point
out the downward trend
presented the blue line which is
actual sales
Jack notices the red alert signals next to the Total sales and net sales metrics. It seems that sales for this quarter
is not meeting target.

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The same dashboard can be

viewed on the SAP
BusinessObjects Mobile App on
iPad.
Lava Dashboard works on mobile devices too. When Jack is outside of his office, he can easily review the same
dashboard on his iPad and make the same observations.
Open Mobile BI follow

instructions described in 2.2.2
system access portion of the
script.
logon with below account:
smithjo/welcome
Tap on

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Tap on Retail from the list under

Server.
And tap on

Page 12
What to say
Jack realizes that they need to run some promotions to increase sales.
One of the action items is to identify the most profitable customers and their purchase preference, in order to reward their loyalty and promote cross-sell
opportunities. Best Run will utilize SAP Predictive Analysis.
Use also this opportunity to discuss SAP HANA advantages for PA:
SAP HANA is a fully ACID compliant, in-memory, columnar, massively parallel processing platform that provides common database for online transactional
processing (OLTP) and online analytical processing (OLAP), eliminating redundancy and latency. It also unifies end-to-end data processing with search,
text, geospatial and predictive analytics on top of the in-memory columnar foundation, further extending the benefit of redundancy and latency elimination to
all data processing workloads. SAP HANA provides a powerful suite of predictive, spatial, and text analytics librairies that can run across multiple data
sources. Visualize new opportunities and gain deep insights with unified analysis of all of data types.
SAP HANA also enables real-time prescriptive analytics by reducing layers of processing and accelerating complex computations required for scheduling
and simulations.
What To Do
Start SAP Demo Cloud CSA
(Green Phoenix) Showroom and
Click on Desktop.

Mike, Lead Analyst of BestRun, starts his analysis by opening SAP Predictive Analysis and beginning a New
Document.
You should see a Predictive

Analysis icon once remote
desktop starts.
Save Excel file first to the

desktop drive.
Note: You can obtain the Excel
file from the same place in SAP
Demo Store where you download
this demo script.
At next screen, click on New
Document
Page 13

Page 14
Click on
Select Retail.xlsx from your local

drive and select sheet:
Customers.
And click on Create

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Click on Prepare tab
Mike uses data from customer table, which contains customer demographic information gathered from loyalty card
program and transcations information. He can view the Facets view of our data, which provides the frequencies of the
different values for our variables.
Move to Facets view of the data
Click on
icon next to
Income Column.
In Facet view, Mike can directly sort to view the values of each varialbe. For instance, he click on the sort button for
Income and notices that the highest income of the customers is $307064 and there is one customer with that amount of
income.
Select sort from the drop down

menu and choose Sort dimension
descending

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Click on Visualize tab
Click on
Region
Predictive Analysis has visualization and graphing capabilities built right into the modelling tool, so there is no need to
move between programs when Mike conducts his analysis. Mike would like to perform some high level analysis first.
He starts with a Geo chart to gain a high level view of the customers.
next to Dimension
Select create a geographic

hierarchy and click on By
Names

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Click on Confirm.
Click on OK
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Choose Geo Choropleth Chart
Mike is able to tell right away that California and Midwest states have the highest number of customers. And he also
notices the states with very light colors, these are the states with fewer customers.
Drag and drop the Region from

Hierarchies to the Geography
portion of the chart.
Drag Customer_Sum from

Measures to Value portion of the
chart.

Page 19
Change to Geo Pie chart
Mike can get an additional layer view of the data quickly by adding Time last purchase made to the same chart.
Drag Time Last Purchase Made

to Overlay Data

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Click on share tab.
Mike can share this visualization in one click via email with his colleagues.
Select the visualization and click

on Send visualization by mail

Page 21
Click on Predict tab
The Geo map chart provides a high level overview; but does not provide the in depth analysis needed to identify the most
loyal customers. To conduct advanced analysis, Mike moves to the Designer area of SAP Predictive Analysis to set up
the workflow needed for his analysis.
First, Mike would like to run a Clustering Algorithem to segment the customers.
Drag and drop R-K-Means

algorithm to the workspace

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Double click on R-K-Means icon

to Configure Properties.
First Check
Then uncheck these two

variables:
Customer number
Postal code
Set cluster number to 8
And click on
Click on
on top right of window to run analysis.
He starts the analysis and clicks Yes to proceed to view the result.
And then proceed to Visualization area when he receives the run success window.

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Click on
icon the
bottom corner of the Result view.
Customers are segmented into 8 groups. Mike notices clusters 1, 2, 6 and 8, these clusters all have high density, which
means customers within each of these groups share very similar characteristics.

Page 24
Select the scatter matrix chart
in the result view.
Mike observes that cluster 1 consists only of the younger age group.

Page 25
Click on
Mike now switches to Visualize mode to get a better understanding of the segmentation result.
He would like to know the purchasing pattern for each cluster. He starts with a bubble chart.
Select the component
From the top of the window.

Select bubble chart.
Click on the down arrow next to

the following measures to select
Average for each measure.
o # of purchases last 6
months
o Age
o CreditScore
o Total purchase lifetime
o Total items purchased
last 6 months
Mike notices the big bubble that is apart from the rest of bubbles. Based on the legend, this bubble represents cluster 1
customers. It seems that cluster 1 customers have the highest lifetime purchase amount, and highest number of total
items purchased in the last 6 months.
Note: Cluster number is assigned randomly when you run this algorithm. It might not be cluster #2 when you
run this in PA. Please note the cluster with the least number of records; this is the cluster that will be used in
the following steps.

Page 26
Then set up the bubble chart as

shown on right.
Select Combined column line

chart with 2Y-Axes
Next, Mike introduces some demographic variables to the analysis and discovers that cluster 1 customers are a younger
group of customers with high credit scores. This is definitely the type of customers that retailers would like to target.

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And enter setting as below:
Select Tag cloud for your

visualization now.
Next, Mike conducts analysis on this cluster customer alone. First, he creates a tag cloud chart to check their buying
frequency and most recent buying period. It turns out most of them made a purchase pretty recently, ranging from 1
week ago to 6 month ago. And they purchased relatively high amount of popular items as indicated by the color
intensity of the words. It seems that Mike has found the loyal customers he is searching for. However, Mike also
noticed that more customers in this cluster made last purchase 1 month ago, so they could be at the verge of
abandonment.
Enter setting as below:

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Click on Add filter at the top of

the window.
Select cluster number for adding

filter from the drop down menu.
Choose cluster number 1 and
click on OK

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Click on Pie Chart
Now that Mike has found the loyal customers he is searching for, he needs to understand how they purchase. Mike uses
a pie chart and discovers that 77% of them shopped online. This fits the younger, affluent customers shopping pattern.
Enter setting as below:
Leave ClusterNumber filter info

unchanged.
Click on
Tab
Mike would like to export the segmentation result to a file. He chooses to export as a CSV file. This output assigns
cluster number to each customer record.

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Drag and drop CSV writer from

the data writers tab on the right
side of the window.
Double click on the CSV writer to

configure its properties.
Enter path and file name you
want the export to be.
Click on Done.
Select Run to execute the
analysis
When the execution status

prompt window appears click on
OK

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Click on
tab
Click on New Data Set
Choose the same file and select

the Transactions sheet.
Click on Create.
Click on
tab.
Drag and drop R-Apriori from

the algorithms tab to the
workspace
Now Mike needs to decide what items can be used to reward this group of loyal customers and address the potential
abandonment issue. He conducts a R-Apriori Association analysis for basket analysis. The apriori algorithm will output a
set of rules representing cross-sell or up-sell relationships. First, Mike selects the item column to be product, as he
wants to start by conducting his analysis at the product level. Next, Mike selects transaction ID column to be trans.
Support is the minimum percentage of transactions in our data that need to contain items from the categories that we
are analyzing. If we are looking at the purchase relationship between categories A and B with a support level of 5%, then
greater than 5% of the purchases must contain products from categories A & B. Mike sets this value at 0.05.
Confidence is the liklihood that a customer will purchase from category B given they have purchased A, in essence what
percent of transactions that contain A also contain B. Mike sets this value at 0.1. Now he can save and run his market
basket analysis.

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Page 33
Double click on the algorithm to

configure its properties.
Configure the settings as shown
in the figure.
Click on Done.

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Click on Run to execute the

analysis.
When the execution status

prompt window appears click on
OK
Select the Association chart

from the result view.
Mike will get a notification that his analysis has been successfully executed, and he will be able to see the relationships
between his purchases.
Now he can evaluate the results of our analysis with the provided purchase relationships. The PreRule product
categories on the far left are the traffic driver products. The PostRule product categories are affinity products, basket
builders that are most often purchased with something else. The Lift value on the far right is the one number used to
evaluate these relationships as cross-sell or up-sell opportunities, the higher the better. Generally a Lift value over 1 is
considered a viable opportunity.
The basket analysis results suggests that customers usually buy collection pencil skirt when they shop for chiffon tops
and suede pumps. Mike concludes that focusing on the cross-sell relationship between these items would lead to the a
win-win situation for both Best Run and its loyal customers.
Since Mike has exported the segmentation result already, in the output table, each record is assigned a cluster number.
He can easily identify cluster #1 customer and email them an online special offer of buy 1 chiffon top, get 1 collection
pencil skirt 75% off.

Page 35

Page 36
Open the Sales Performance

dashboard again. Click on
Scenario 3 tab on the top right
corner.
The promotion is a success, along with other actions that management has taken, Best Run closes out the quarter above
target. In addition, due to analysis done in SAP Predictive Analysis, Best Run is now able to track their top customers s
KPI on a ongoing basis.
Click on ALL next to CUSTOMER

point out the upward trend in
Total Sales chart.

Page 37
Click on TOP
In addition, due to analysis done in SAP Predictive Analysis, Best Run is now able to track their top customers s KPI on
a ongoing basis. They have created a Top filter specifically to track metrics related to this group of customers.

accessed on iPad by following
the instructions outlined earlier
for
The same dashboard is aviliable on iPad for consumption out of office.

Page 38
Open Customer Analytics swf

file to showcase the various
metrics tracked for the individual
customer. Also mention that SAP
Jam can be utilize for
collaboration.
Best Run is also able to create individual view of their most loyal customers activities and metrics. And take immediate
action to retain/reward these customers. Team members can collaborate using SAP Jam to quickly create personalized
offers.

accessed on iPad by following
the instructions outlined early.
In this case, tap on
The exact same dashboard can be viewed on an iPad.

Page 39

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DEMO SCRIPT

Date Last Updated:

Industry Name Retail

SAP AG 2014 / INTERNAL SCENARIO ID: 8860

COPYRIGHT 2014 SAP AG. ALL RIGHTS RESERVED.

SAP AG 2014 / INTERNAL SCENARIO ID: 8860

Demo Script Overview .........................................................................................................4

Demo Description .................................................................................................................................... 4

Intended audience ................................................................................................................................... 4

Key Messages and Value Proposition ..................................................................................................... 4

Technical Requirements ......................................................................................................5

System Access Information ..................................................................................................................... 5

System Landscape ..................................................................................................................... 5

System Access ........................................................................................................................... 5

Languages Supported ................................................................................................................ 6

Release for Used Components ............................................................................................................... 6

Demo Script .........................................................................................................................7

Story Flow ............................................................................................................................................... 7

Step-By Step Guide................................................................................................................................. 8

SAP AG 2014 / SCENARIO ID: 8860

DEMO SCRIPT OVERVIEW

1.2. INTENDED AUDIENCE

1.4. KEY MESSAGES AND VALUE PROPOSITION

SAP AG 2014 / SCENARIO ID: 8860

SYSTEM ACCESS INFORMATION

System Landscape, this Process is built in

HANA-BI-EIM regional showroom (edition 2014 V1 onwards).

SAP AG 2014 / SCENARIO ID: 8860

2.3 RELEASE FOR USED COMPONENTS

SAP AG 2014 / SCENARIO ID: 8860

SAP AG 2014 / SCENARIO ID: 8860

STEP-BY STEP GUIDE

Install SAP BusinessObjects Mobile App on iPad

What to Say (include necessary Screenshots)

Launch SAP BusinessObjects Mobile app on

SAP AG 2014 / SCENARIO ID: 8860

What to Say (include necessary Screenshots)

First open the customer Loyalty

SAP AG 2014 / SCENARIO ID: 8860

Then point at the

SAP AG 2014 / SCENARIO ID: 8860

The same dashboard can be

Open Mobile BI follow

SAP AG 2014 / SCENARIO ID: 8860

Tap on Retail from the list under

SAP AG 2014 / SCENARIO ID: 8860

What to Say (include necessary Screenshots)

You should see a Predictive

Save Excel file first to the

SAP AG 2014 / SCENARIO ID: 8860

Select Retail.xlsx from your local

SAP AG 2014 / SCENARIO ID: 8860

Click on Prepare tab

Move to Facets view of the data

Select sort from the drop down

SAP AG 2014 / SCENARIO ID: 8860

Click on Visualize tab

Select create a geographic

SAP AG 2014 / SCENARIO ID: 8860

Choose Geo Choropleth Chart

Drag and drop the Region from

Drag Customer_Sum from

SAP AG 2014 / SCENARIO ID: 8860

Change to Geo Pie chart