"Being creative with data" 25th November - KXEN presentation

Using Predictive Analytics Presented by: Alan Furness November 25 th 2009

Agenda
KXEN – Company Background
The Impact of a Changing Environment
Getting the First Mover Advantage
Examples
KXEN, Inc Company Confidential

Your Environment and Goal Change over Time KXEN, Inc Company Confidential Requires More Focused Models Requires More Current Data Requires Frequent Updates Markets Are Different Customers Are Different Products/Channels are Different Your Strategies Change Customer Situations Change The Environment Changes

Combining data in models
CRM
EPOS and shopping data
eCommerce
Web analytics
Behavioural
sequencing
Unstructured (text)
Attitudinal
Social Networks Analysis
Churn and fraud

Too much data…..? KXEN, Inc Company Confidential Have you got lots of data? Are you getting Value from it? Analytics is about Insight

Do More…Modeling Automation is Key! KXEN, Inc Company Confidential 3 Weeks Next Generation 3 Hours Build Model Understand Apply
Variable selection
Data preparation
Variable encoding
Missing value handling
Outlier handling
Binning and banding
Model Fitting
Model Testing
Model Reporting
Model Deployment
KXEN Automates Legacy Data Mining Select Variables Under- stand Apply Prepare Data Build Model Test Model

Agenda
Examples

Goals:
Understand each customer’s unique needs
Customise offers
Personalise sites
Serve up the right offer
While tracking the impact of the offers
KXEN, Inc Company Confidential Grow Customer Relationships Improve Marketing Efficiency

Behavioral-Based Insight KXEN, Inc Company Confidential Thousands of Audience Segments Thousands of Potential Advertising Placements Ingest Large Volumes of Self-expressed User Data Deliver Real-time Recommendations and Predictions Model Dynamic Continuous Fast cycle Next Best Offer Next Best Activity Marketing Mix Retain Cross-sell Attribution Acquire Next Best Product

For Each Customer… Determine
The Right
Product
Channel
Creative
Offer
Timing
KXEN, Inc Company Confidential Product Timing Channel Offer Creative Customer Next Best Offer

How Analytics Can Help you be a First Mover
Provide the right content
On the right media
At the right time
To sell the right product
To the right prospects
While being able to
attribute the cost and value
understand the net value
KXEN, Inc Company Confidential Grow Customer Relationships Improve Marketing Efficiency

Agenda
Examples

Example : Ad Attribution for Financial Services Provider
Spends $48MM /year with DoubleClick
Data volumes are large
500m users (cookies) per month
12b impressions per month
450 distinct page placements
300 distinct creatives
Users see the ad many times before they convert, what are the key drivers of conversion?
KXEN, Inc Company Confidential Solution Solution Solution Situation
Data Preparation on the Amazon Cloud – 6 days
Model Building with KXEN took 90 seconds
130k rows
100 columns
High accuracy and robustness
Key drivers and business insight identified

Example : Ad Attribution for Financial Services Provider (cont.) KXEN, Inc Company Confidential Solution Key Drivers Variable % % of impressions from the site they visit most often 21% number of creatives seen 19% internet domain 13% site page they see most often 11% city 8% number of days with impressions 7% DMA 6% site they see most often 5% number of operating systems 5% number of domains 4% Top Referring Site Freq 1 - Crossed Frequency Fool.com, KxOther, Seeking Alpha 1.32% 4.51% CNNMoney, TheStreet.com 3.44% 2.29% Bloomberg.com, Silicon Alley Media , Vibrant Media Inc, Wall Street Journal Online, Yahoo 39.76% 1.24% InvestingChannel, MSN 36.57% 0.75% AOL.com, Turn, Inc., United 18.92% 0.53%

Example : Conversion for an Ad Network
Ad Network collects customer shopping behavior from a number of retailers
which customers would be good prospects for which offers
Revenue is based on the number of click-throughs obtained – accurate targeting means more $$
Need to develop and refresh acquisition and cross-sell models for each retailer, monthly
KXEN, Inc Company Confidential Solution Solution Solution Situation
Built infrastructure for the data collection and preparation
Automate the model refresh and model validation
Analyst only reviews model results, rather than manually train each model

Example: Online Conversion KXEN, Inc Company Confidential
Situation
Due to limited service representatives, an interactive chat company needed to predict which on-line visitors are more likely to have a “positive outcome” if engaged in a live chat session.
Situation
Process
Using click-stream behavior to build a random test model
Models are built and embedded on the website that predict the probability of a positive reaction.
Visitors are scored every 10 seconds
The highest scoring visitors are approached
Process
Solution
Increase conversion rates
Enhanced customer experience
Optimised service center resources
Solution

Example : Royal Shakespeare Company
Reach broader diverse audiences
Encourage core of loyal customers to visit more
KXEN, Inc Company Confidential Solution Situation Josh Kirby c1993 Results
Stratford ticket sales up 61%
Regulars up 80%
New London market identified
Donations up 67%
Membership increased by 40%
London DM strategy – 45 minutes
Solution
Segmentation models

At the end of the day…..
Modelling and Analytics only provide insight….
The insight has to be actionable
And usually the action is a marketing one
The Far Side

Thank You

"Being creative with data" 25th November - KXEN presentation

by The_IPA on Dec 01, 2009

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"Being creative with data" 25th November - KXEN presentation — Presentation Transcript