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Sirius XM Radio Turns Up Marketing Volume With SAS® Analytics

SAS® Predictive Analytics project costs and benefits, improve decisions

After ten years providing new-car owners boundless choices of entertainment and information, Sirius XM Radio is discovering used-car customer needs. Applying predictive analytics from SAS, the leader in business analytics, the company is modeling customer behavior patterns, helping its decision makers better tailor offers to this new market. In addition to reducing marketing costs through precise targeting, analytics help Sirius XM Radio serve the right message, to the right person, at the right time so they can grow subscribers and revenues.

Initially, marketers expected new-car and used-car customer purchase behavior to look similar. But segmentation and predictive models quickly surfaced distinct differences—insights that guide the company in developing new marketing campaigns. Respect for analytics keeps growing.

“We use SAS Analytics to project costs and benefits before making meaningful investments at Sirius XM Radio,” said Kaiser Fung, its VP of Strategic Analytics and the author of Numbers Rule Your World: The Hidden Influence of Probability and Statistics on Everything You Do. “What looks like tiny incremental gains in performance mean a lot to us. With 20 million customers, a 50-cent improvement in profitability delivers millions of dollars to our bottom line.”

Fung is a strong proponent of communicating the business implications of analytic results. “Analytics influence business decisions when analytics pros understand the landscape and can share their findings with executives in that context. Especially when analytical intelligence conflicts with conventional wisdom, if we make the benefits clear, the numbers win over skeptics and significantly benefit the organization.”

With SAS® Predictive Analytics award-winning data mining software, SAS® Enterprise Miner™, Sirius XM Radio exploits massive stores of data and it is expanding its analytic bandwidth using JMP Pro, SAS’ advanced statistical desktop software for interactive data visualization, discovery and exploration.