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DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
DDMA / Chordiant: Online Marketing
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DDMA / Chordiant: Online Marketing

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Hugo Koopmans van Chordiant laat op overtuigende wijze zien hoe hij Tweede Fase Marketing succesvol toepast in zijn …

Hugo Koopmans van Chordiant laat op overtuigende wijze zien hoe hij Tweede Fase Marketing succesvol toepast in zijn
bedrijfsvoering.

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  • 1. Event: DDMA iLounge Thema: DM 2.0 Spreker: Hugo Koopmans – Chordiant Datum: 26 september 2007, De Balie Amsterdam www.ddma.nl
  • 2. Inbound marketing : van cost naar profit centre Hoe het ‘Next Best Action’ paradigma voor meer omzet,service en loyaliteit zorgt.
  • 3. Contents <ul><li>O2 CRM Transformation Programme </li></ul><ul><li>An Example campaign </li></ul><ul><li>The Next Best Action paradigm </li></ul><ul><li>Vision </li></ul><ul><li>Conclusion </li></ul><ul><li>Chordiant Centralized Decisioning </li></ul>
  • 4. What is the CRM Transformation Programme? <ul><li>The CRM Transformation Programme is changing the way O 2 sustains relationships with its customers through: </li></ul><ul><ul><li>enabling consistent and intelligent customer decisioning, </li></ul></ul><ul><ul><li>for a consistent customer experience, </li></ul></ul><ul><ul><li>that will provide for consistent and improving business performance. </li></ul></ul><ul><li>To do this O 2 will be: </li></ul><ul><ul><li>changing the way people work in Marketing, </li></ul></ul><ul><ul><li>changing how the contact centres operate, </li></ul></ul><ul><ul><li>increasing collaboration between marketing, sales and customer service. </li></ul></ul><ul><li>It is providing: </li></ul><ul><ul><li>predictive data mining and strategy management tools, </li></ul></ul><ul><ul><li>a robust customer data set for acquiring customer insight, </li></ul></ul><ul><ul><li>real-time execution of customer intelligence and access for multiple touch points. </li></ul></ul>
  • 5. What is being transitioned
  • 6. Foundation Blocks CRM Transformation Programme Data Mining Strategy Management (Decision Engine - Campaign Integration) Decision Engine (Operational Decisions) Customer Planning Capex Revenue (£ x k) + (£ x m) + (£ xx m) £0 +£ 5 m +£ 10 m +£ 100 m ? Phase 0 Phase 1 Phase 2 Full Rollout
  • 7. An example campaign : Evaluation of Summer Roaming Promotion We think it is a great campaign!
  • 8. What were we trying to achieve? <ul><li>We wanted to see as many customers as possible to start roaming for the first time this summer because of our communication. </li></ul><ul><li>We wanted to see if the propensity model generated higher: </li></ul><ul><ul><li>Response </li></ul></ul><ul><ul><li>Roaming calls and duration </li></ul></ul><ul><li>What is the best media for this communication. </li></ul>
  • 9. Which customers are more likely to roam? If a customer tops up more then £8 per month, it increases probability to roam by 7% Customers with Nokia Handsets have higher probability to start roaming If a customer uses a credit card for top ups, and the higher the amount the more likely they are to roam. Online Customers have the highest probability to start roaming The more customers use their voicemail the more likely they are to start roaming Propensity Model
  • 10. Customers Who Roamed After the Promotion <ul><li>Effect of the propensity model on response rate 5.7% </li></ul><ul><li>Effect of the propensity model + an offer 7.7% </li></ul><ul><li>E-mail is the channel that generated the highest response rate (10% uplift compared to the control) </li></ul><ul><li>DM was the least effective and the most expensive channel. </li></ul><ul><li>Fantastic results, considering our previous roaming promotions generated below 1% incremental response rate. </li></ul>Net effect of the proposition £1,170,000 (forecasted £57,000)
  • 11. The Next Best Action paradigm
  • 12. The Next Best Action Business Opportunity <ul><li>Today, overall customer interactions amount to a significant total contact time </li></ul>= 40x advertising budget Return on Interaction Average interaction time / yr 3 hr 22 m Per customer Branch Web Call Centre ATM Customer Channel Activity 1,7 1,8 1,5 8,4 Average interactions per month
  • 13. Trivial Next Best Action Strategy If there are no risks, what sales proposition should be made and in what way? MMS Propensity Broadband Eligibility Travel Services Propensity Broadband Propensity Travel Services Eligibility MMS Eligibility Broadband Proposition Travel Services Proposition MMS Proposition Best Offer Best Action Credit Risk Prediction Risk Mitigation Strategy Is there a credit risk? If so, how to respond? Value Prediction Retention Proposition 1 Churn Prediction Retention Proposition 2 Champion Challenger Retention Matrix Is there a churn risk? If so, should we invest in retention? If so, how to retain?
  • 14. What is Vision? <ul><li>Vision is a an application to assist advisors to make the most appropriate and relevant offers to our customers. </li></ul><ul><li>Vision uses real-time customer intelligence based on the history of the customer’s behaviour with O2 (tenure, tariff, usage, customer type, etc) along with the context of the conversation they are having with the advisor (the reason they called us) to calculate the most appropriate and relevant offers to make to the customer. </li></ul>
  • 15. How does VISION work? <ul><li>Upselling products and services to customers </li></ul><ul><ul><li>After the advisor enters the Customer ID and the call context, VISION runs propensity models and business rules against each of the 37 “product” offers, using multiple fields from the available 500+ fields in the Data warehouse, and taking into account any recent VISION decision history, scores and ranks each offer, and then displays the top 3 most appropriate and relevant offers/actions to the advisor </li></ul></ul>Data Warehouse Business rules around usage, customer and product data Propensity Models Vision recommendation to advisor Call Context, Customer Responses
  • 16. Vision for up sell opportunities
  • 17. Group acct no Group name Group code Postcode Account type BAM/BRM Reward taken Flex account Company acct no Company name Company code Account no Account name JBU8045021 JBU8048231 SME CT3 3EQ No Boltons Marley Group JBU6821588 Marley Waterproofing MPN 07860349815 Tenure (months) First prog. award CONTRACT LOYALTIES Current tariff Agreement no ITS 252 No Net 100 R/T Marley Floors & Waterproofing Top offers for MPN are displayed. Offers take into account the call context and the caller’s decisioning authority.
  • 18. Group acct no Group name Group code Postcode Account type BAM/BRM Reward taken Flex account Company acct no Company name Company code Account no Account name JBU8045021 JBU8048231 SME CT3 3EQ No Boltons Marley Group JBU6821588 Marley Waterproofing MPN 07860349815 Tenure (months) First prog. award CONTRACT LOYALTIES Current tariff Agreement no ITS 252 No Net 100 R/T Marley Floors & Waterproofing If no offer is made, this is recorded by pressing ‘Not offered’ button. Click on an offer to select it. The script helps the advice discuss the offer and provides a tailored justification If offer is made, customer’s response is recorded by pressing appropriate ‘response’ button.
  • 19. Vision for Retention
  • 20. Objective in Retention <ul><li>We wanted to re-align our investment to retain our best customers </li></ul><ul><li>With manual systems, it was very difficult to change advisor behaviour, and the focus had always been on a single target which was volume </li></ul>Value of re-sign investment Customer Value
  • 21. Every customer receives a totally personalised experience <ul><li>Standard Practice </li></ul><ul><li>Upgrade investment by matrix bands </li></ul><ul><ul><li>Spend range + tenure </li></ul></ul><ul><li>Save combos via briefed rules </li></ul><ul><ul><li>Limited systems control or reporting </li></ul></ul><ul><li>Refer to billing to see customer usage </li></ul><ul><li>Refer to devices website for handset info </li></ul><ul><li>Commission helps delivers on-target overall subsidy cost </li></ul>With Vision Deal Calculator Individual investment value for every customer based on their monthly spend No save rules – just an investment target cost and maximum – much more flexibility for agents and cost management for O2 One screen view and recommended offers Vision handset wizard helps match phones to need Vision shows commission by transaction and performance to target
  • 22. Meeting customer demand for advice and re-assurance can help us tailor packages that fulfil their needs, but also manage our costs Advice Managing costs Managing Cost
  • 23. Chosen save tools are added to the shopping basket Remaining balance is re-calculated Agent selects chosen save tools
  • 24. Vision Results Conversion rates
  • 25.  
  • 26. Conclusions <ul><ul><li>We’re able to optimise inbound contacts by having relevant conversations with customer and offering the right products and services at that moment </li></ul></ul><ul><ul><li>In retention we’re now able to control our retention spend by customer value </li></ul></ul><ul><ul><li>The dynamic solution enables us to make quick changes to business requirements </li></ul></ul><ul><ul><li>All of these strategies help to improve the customer experience by truly delivering on our O2 customer promise </li></ul></ul>Good knowledge of customers and great processes help us to invest in fantastic customer experiences…. resulting in incremental revenue and an increase in customer satisfaction
  • 27. Centralized Decisioning At the heart of improving “Customer Experience” Self Service Contact Center Retail Branch
  • 28. <ul><li>Hugo Koopmans </li></ul><ul><li>Principal Consultant Decisioning </li></ul><ul><li>[email_address] </li></ul>

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