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Acxiom Interactive  Marketing Summit 2011- Real-World Perspectives on Real Time Decisioning
 

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Acxiom Interactive Marketing Summit 2011- Real-World Perspectives on Real Time Decisioning

Acxiom Interactive Marketing Summit 2011- Real-World Perspectives on Real Time Decisioning

Scott DeAngelo, Marketing Strategy Practice Leader Acxiom Global Consulting Group

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  • LOOKING AT CUSTOMER VALUE OVER TIME, MOST COMPANIES – LIKE CASINOS IN THE EXAMPLE – HAVE BECOME GOOD AT QUICKLY SPRINGING INTO ACTION WHEN THEY STAND TO LOSE MONEY. HOWEVER, IT REMAINS A CHALLENGE WHEN IT COMES TO QUANTIFYING AND CAPTURING THE DOLLARS MOST COMPANIES “LOSE” (OR, MORE ACCURATELY STATED, “FAIL TO GET”) AMONG CUSTOMERS WHO GIVE THEM LESS THAN THEY “SHOULD”. SHOPPING CART EXAMPLE DURING THE SESSION YOUR BASKET IS FLUCTUATING BETWEEN $200 AND $400… DI-DIRECTIONAL NEGOTIATIONLEADING TO PERSONALIZED PRICING
  • SO IF WE LOOK AT A COMMON CUSTOMER EXPERIENCE – WHETHER IT’S OFFERS DELIVERED IN BATCH OR IN REAL-TIME “PUSH” FASHION – THEY BOTH FALL SHORT OF MAKING THE MOST OUT OF A GIVEN CUSTOMER INTERACTION BECAUSE THEY ARE SERVING UP OFFERS THAT ARE BASED SOLELY ON HISTORIC INFORMATION…AND NO MATTER HOW RECENT THAT HISTORIC INFORMATION IS, THE OFFER BEING PRESENTED FAILS TO REFLECT INFORMATION FROM THAT SESSION…AND THERE’S NOTHING THAT CAN BE DONE ABOUT IT AT THAT POINT. BECAUSE THERE’S NO WAY TO INCORPORATE THAT IN SESSION INFORMATION WITH THE HISTORIC INFORMATION IN REAL TIME TO DECIDE ON AND PRESENT A MORE RELEVANT OFFER. (EXAMPLE: READING PAPER ALOUD TO IDENTIFY GRAMMAR MISTAKES – DO THE SAME WITH THE CUSTOMER “CONVERSATION” – IN A CALL CENTER, THE CONVERSATION IS LITERAL SO YOU CAN EASILY IDENTIFY HOLES…BUT ONLINE, DO THE VOICEOVER AND SEE HOW MUCH SENSE THE CONVERSATION IS MAKING). NOW, I TEND TO TAKE A STEP BACK AT THIS POINT AND SAY “ALRIGHT, THE ABILITY TO PRESENT A RELEVANT OFFER IS AN IMPORTANT FEATURE…BUT THE WEBSITE IS STILL THERE, SEARCH FUNCTIONALITY IS STILL THERE….SO WE GOT BACKUP.
  • SO THAT REFOCUSES US ON THE NEED TO BE ABLE TO NOT ONLY BE GOOD AT PREDICTING WHAT A CUSTOMER IS INCLINED TO WANT OR DO…BUT ALSO AT ADAPTING TO WHAT THEY SHOW US OR TELL US IN A SPECIFIC SESSION WHAT THEY INTEND TO DO.
  • THE 3 HALLMARKS OF MASTERING THE INTERACTION COMPLEXITY ARE… 1.

Acxiom Interactive Marketing Summit 2011- Real-World Perspectives on Real Time Decisioning Presentation Transcript

  • 1. Acxiom Interactive Marketing Summit 2011
    • April 4, 2011
    • San Francisco, California
    www.acxiom.com/ facebook www.acxiom.com/ twitter www.acxiom.com/ linkedin www.acxiom.com/ youtube Twitter : #AcxiomSummit
  • 2. Real-World Perspectives on Real-Time Decisioning
    • Scott DeAngelo
    • Marketing Strategy Practice Leader
    • Acxiom Global Consulting Group
    www.acxiom.com/ facebook www.acxiom.com/ twitter www.acxiom.com/ linkedin www.acxiom.com/ youtube Twitter : #AcxiomSummit
  • 3. The Story of a Casino “Customer”… … and Unrealized Customer Value
  • 4. Maximizing Value (vs. Only Minimizing Loss) Across the Customer Lifecycle Customer Value Time
    • But it remains a challenge to…
    • Quantify untapped upside
    • Indentify events / MOTs
    • Understand their signals
    • Act quickly on those signals
    • Most have become good at…
    • Quantifying potential loss
    • Setting investment levels
    • Identifying loss triggers
    • Acting to save / win back
  • 5. A Common Customer Experience: Offers Delivered via Batch or “Real-time Push” Success of interaction now depends on non-personalized factors…customer is “flying solo” Targeted offer recommendations often based on a broad segment, rather than an individual Channel serves up recommendations that are based completely on historical data… … but the most critical information – that which is provided at the immediate point of contact – is not factored into recommendations Real-time decisions need to be made based on historical data and new information …but no access to knowledge held within batch systems
  • 6.
    • Financial Impact to Average Retailer
    • Revenue Lost due to “Site Failure” = $31 million
    • Avoidable Servicing Costs Incurred = $23 million
    • Total “Cost” = $54 million
    • Plus Opportunity Cost = $?? million
    Revenue Lost and Costs Incurred When Customers Don’t Find What They Need Source: Forrester
  • 7. An Interactive Customer Experience: Offers Delivered Based on Real-time Interaction Query about my bill Answer query Proposition A Yes please! Proposition B Maybe later Proposition C
  • 8. Key Ways of Putting Decisions Into Play Source: Gartner Enterprise Customer Batch Scores Real-time Scores Real-time Decisions Customer-triggered “ Reactive” Relationship-driven “ Interactive” Pre-interaction Data In-session Data Enterprise-initiated “ Intrusive” Decision Rules Scoring Models
  • 9. Maximizing Value with Real-time Decision-making (Not Just Real-time Offer Delivery) Customer Value Time Source: Gartner 5X Offers Delivered in Real-time 10X Offers Driven by Decisions Made in Real-time Offers Delivered in Batch
  • 10. “ The more contact I have with humans, the more I learn.” - The Terminator
  • 11.
    • What is the current state of our customer experience…
    • … and its impact on our relationships with customers?
    • What should be done next to enhance that experience…
    • … in order to nurture broader and deeper relationships?
    Fundamental Considerations for Evaluating and Implementing Real-time Decisioning How can real-time decisioning help us deliver the desired customer experience?
  • 12. Identifying and Addressing Key Events Across the Customer Lifecycle… Customer Value Time
    • Example Key Events
    • Behaviors
      • Purchase
      • Register
      • Subscribe
    • Life Events
      • Marriage
      • Children
      • Job Change
    • Seasonal Events
  • 13. … by Receiving and Sending Signals that Influence Customer Behavior Customer Value Time
    • Example Signals
    • Search terms
    • Referring URL
    • Click stream
    • Preference update
    • Tweet/blogging
    • Display click thru
    • Ratings / reviews
    • Login recency
    • Website idling
  • 14. … by Receiving and Sending Signals that Influence Customer Behavior Customer Value Time Real-tim e Decisions
  • 15. Here’s an Example from Insurance for Linking Events, Signals and Actions Map the events, link to signals and plan potential actions
  • 16. The Game is Still the Same… … It Just Gets So Much Faster
  • 17.
    • Having a Single, Complete Customer View
    • Building Propensity Scoring Models
    • Determining Customer Eligibility
    • Optimizing Offer Selection
    • Incorporating “Context-aware” Data
    • Incorporating Customer Reaction Learning
    Fundamentals of Making Good Decisions
  • 18. Playing Faster Has Great Benefits... Too Slow Too Fast Useable Cost/Benefit Response time + - 0 Ideal Irrelevant Disorienting Source: Gartner
  • 19. … But it Obviously Doesn’t Matter How Fast an Organization Can’t Be Relevant
  • 20. Here’s an Example from Automotive for Actions Based on Time and Relevance In-Market Timing Percentile Brand Propensity Percentile “ Relationship Mode” Action Series “ Direct Sales Mode” Action Series “ Competitive Mode” Action Series “ Branding Mode” Action Series                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Rules Based Controls
  • 21. Evolution for Multi-channel, Real-time Interactions Across the Enterprise Batch Scores Real-time Scores Real-time Decisions Multi- Channel Integration Enterprise- Wide Integration Interaction Complexity Integration Complexity
  • 22. Evolution for Multi-channel, Real-time Interactions Across the Enterprise
    • Best Practice Elements
    • Dynamic, Individual Conversation
    • Spanning Time and Channels
    • Bi-directional Negotiation
    Batch Scores Real-time Scores Real-time Decisions Multi- Channel Integration Enterprise- Wide Integration Interaction Complexity Integration Complexity
  • 23. Evolution for Multi-channel, Real-time Interactions Across the Enterprise
    • Best Practice Elements
    • Actionable Single View of Customer
    • Central Customer Decision Authority
    • Front/Back Process Orchestration
    Batch Scores Real-time Scores Real-time Decisions Multi- Channel Integration Enterprise- Wide Integration Interaction Complexity Integration Complexity
  • 24. Capability Model for a Connected World
  • 25. Customer Segmentation is a Starting Point, Not a Destination in Real-time Decisioning
  • 26. From Broadcasting to Segment Specificity to Narrowcasting
  • 27. A More Complete View of the Customer Drives More Sound Decisioning Strategy
  • 28. Here’s an Example from Retail on How Enhancement Data Improved Actions Action Series based on who she is, as well as how often, when, what and where she buys Action Series based on who she is, as well as how often, when, what and where she buys Next Best Offer
  • 29. Customer Intelligence (Power Ratio) Data Fuels the Engine that Drives Intelligent Customer Interactions Baseline 28:1 132:1 Modelling & Analytics Predictive Power Ratio 7:1 76:1 Visitors Enhancement Data Insights (lifestage and lifestyle, activities and interests, media consumption, channel responsiveness, brand/product affinities, and more) Searches Purchases TM Ratings Method of Matching Breadth of Data Accuracy 44:1 Clicks
    • Enhanced inputs:
    • Derived variables
    • Enhancement data
    • Event Triggers
    • Suppressions
  • 30. Expand Decisioning Strategy from “Nest Best Product” to “Next Best Action”
  • 31. Siloed Decisions Conflict with Each Other, Confuse Customers and Create Waste
  • 32. Coordinate Into a Single, Next Best Action Across the Enterprise, Across Channels
  • 33. The Vision: Sustained Personalized Customer Engagement Across Channels, Over Time
  • 34. Reaching and Engaging Your Audience with Certainty…Across Channels…Over Time Safe Haven Online Display 180mm Profiles Advertiser Audience Publisher Audience Advertiser Enhance Anonymize Match Just Your Audience Anonymous Match Real Time Data Exchange Delivery Integration Partnership Ecosystem Product Propensities Channel Preferences Media Preferences Customer Behavior External Insights Attitudes / Personas Print 292mm Households Mobile 60mm Users Email 224mm Addresses TV 59mm Households Social 650mm Profiles Call Center 100 million numbers Apps Publisher
  • 35.
    • The ability to maintain uninterrupted personalized conversations – and, moreover, relationships – with customers across and within channels
    Welcoming TV to Addressable Media Getting it figured out here… … is great preparation for what’s next!
  • 36. Thank You.