5 Benefits of Customer Decision Management

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Knowing how to create better, more profitable customer relationships starts with an understanding of the strategic and day-to-day operational decisions your company or organization is making about those customers. If you can better manage these decisions, you can apply them in smarter, more purposeful ways sure to boost the value you reap from each customer. This webinar reveals specific tips that you can use to optimize your customer relationships, including:
Targeting customers more accurately
Reacting to customers in real-time
Keeping up with rapid business change
Ensuring consistency in a multichannel world
Keeping costs down with scalable solutions.
This is the presentation from our webinar.
The webinar recording is available here: https://decisionmanagement.omnovia.com/archives/120372

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5 Benefits of Customer Decision Management

  1. 1. 5 Benefits of Customer Decision ManagementJames Taylor CEO
  2. 2. Your Presenter – James Taylor CEO of Decision Management Solutions Works with clients to improve their business by applying analytic technology to automate & improve decisions Spent the last 9 years championing Decision Management and developing Decision Management Systems © Decision Management Solutions, 2012 1
  3. 3. Decision Management
  4. 4. Decision Management is the proven approach used to manage decisionsindependently and effectively apply business rules and predictive analytics © Decision Management Solutions, 2012 3
  5. 5. Decision Management Systems Agile Analytic Adaptive © Decision Management Solutions, 2012 4
  6. 6. Decisions About Customers
  7. 7. Different Kinds of Decisions Strategic Decisions • Few in number, large impact • Should we acquire this company or exit this market? Tactical Decisions • Management and control, moderate impact • Should we focus on retention or acquisition? What’s the best positioning for us? Operational Decisions • Day-to-day decisions that affect one transaction or customer • Best offer for this customer? Retain this customer? Best script to cross-sell this one? © Decision Management Solutions, 2012 6
  8. 8. Operational Decisions Are Everywhere © Decision Management Solutions, 2012 7
  9. 9. Decisions Implement Customer Strategy © Decision Management Solutions, 2012 8
  10. 10. Decisions Maximize Customer Value © Decision Management Solutions, 2012 9
  11. 11. Decisions Scale For Large Impact Strategic Decision Tactical Decision Operational Decision © Decision Management Solutions, 2012 10
  12. 12. Targeting Customers More Accurately
  13. 13. 1:1 Marketing Next Best Action Cross-channel Marketing Markets of 1 Personalization All ways to say that we must make consistent, accurate, customer-centric micro decisions about what to do next © Decision Management Solutions, 2012 12
  14. 14. Personalization And Targeting The best response changes in each situation Analytically derived segments for targeting Prediction of responses, risk Rules to implement policies, regulations, scripting Customer’s own rules about preferences Rapid response, continuous evolution © Decision Management Solutions, 2012 13
  15. 15. Case study: Cable TVBusiness challenges Solution Benefits1.2M households Predictive analytics to 13-18% cross-sell hitMany single-product predict churn, cross-sell rate on averagehouseholds Business rules use Up to 40% cross-sellWhole industry suffers analytics and data to success rate for somefrom low loyalty and drive dynamic scripts Teams using the scripts20%+ customer churn Embedded in call center have more salesIncreasing competition application to improve decision making Reduced churn by 20-and changing regulations 30%
  16. 16. Reacting To Customers In Real Time
  17. 17. Reality CheckPeople don’t makemany of the Systems dodecisions that affectyour customers © Decision Management Solutions, 2012 16
  18. 18. Latency In Decisions Costs You Business event Decision latency Action taken © Decision Management Solutions, 2012 17
  19. 19. Analytics Must Drive ActionOperational Systems Decision Management Systems link Decision analytics to operational systems Analytic Systems © Decision Management Solutions, 2012 18
  20. 20. Case: European BankBusiness challenges Solution Benefits1.7M customers Churn, cross-sell, up- Right offer at the640 branches sell, attrition and next right time through best action models the right channelNeed to increasesales, reduce churn Analytic segmentation 20-30% campaign Decision made for responseChanging interactionswith the bank every customer4-5% campaign in every campaignresponse © Decision Management Solutions, 2012 19
  21. 21. Keeping Up With Rapid Business Change
  22. 22. Decisions Are High Change Components Regulations change Change to keep making compliant decisions Policies change Change validation to track eligibility requirements Competitors change Change the discount to remain competitive Markets change Change the assessment to manage risk Consumer behavior Change to keep selecting the changes right deal terms © Decision Management Solutions, 2012 21
  23. 23. Decisions Management Stays In Synch Conventional Approach Decision Management Other Systems CRM System CRM System Decision Service Frequent code changes Infrequent code changes Other Systems so r t ed=1: so r t ed=1: f or I y = I–I= y > 11; y –I t f or I y = I–I= y > 11; y –I t p rin t( y –Id ,y) : p rin t( y –Id ,y) : if [1a rrayI y] < 1a r r a y I y -1]) t if [1a rrayI y] < 1a r r a y I y -1]) t holder - [a r r a y[ y -1] | holder - [a r r a y[ y -1] | Ia r r a yl y -1]) = 1 [y]) Ia r r a yl y -1]) = 1 [y]) 1a r r a y = holder 1a r r a y = holder Programmers Programmers Frequent policy changes Policy Changes Business users Business users Smart (Enough) Systems, Prentice Hall June 2007. Fig 2.11 © Decision Management Solutions, 2012 22
  24. 24. Case: Beauty RetailerBusiness challenges Solution BenefitsInflexible loyalty POS rules-based Four-fold increase inprogram calculation of loyalty promotion agility discountsCostly and labor- 20% lift in sales in oneintensive campaign Automated loyalty yearimplementation offers delivered through Reduced costs re-printable cardConfusing and time- Improved customerconsuming for in-store Business definition and experiencestaff management of campaigns © Decision Management Solutions, 2012 23
  25. 25. Agile, Industrial Analytics © Decision Management Solutions, 2012 24
  26. 26. Ensuring Consistency In A Multichannel World
  27. 27. Consistency Across Channels Decision © Decision Management Solutions, 2012 26
  28. 28. Case: RetailerBusiness challenges Solution BenefitsGrocery chains are Tailored promotions Increased revenuebattling for market integrated with loyalty Deep knowledge ofshare program customers acrossCustomer loyalty is Integrated system from formatsessential for growth back office to point of More effectiveLoyalty to the brand, sale promotional campaignsnot a single store Consistently compellingformat offers across channels © Decision Management Solutions, 2012 27
  29. 29. Keeping Costs Down With Scalable Solutions
  30. 30. Decision Management Systems Scale Staffing ratios broken Manuals and reports replaced by recommendations and decisions Avoiding the “press 0” problem Always on, powerful self-service © Decision Management Solutions, 2012 29
  31. 31. Better more profitablecustomer relationships
  32. 32. Critical Questions, Customer Decisions What’s the next best action for this customer? What channel should I use to contact them? How do I retain this customer? Can I approve this customer’s request? Is this customer loyal? How valuable is this customer? What’s the best way to handle this problem? … © Decision Management Solutions, 2012 31
  33. 33. Customer Decision Management Better results Existing customers are better value Boost “share of wallet” More loyal Customers treated like a number customers eventually defect Interaction quality is as important as product quality Competitive Only you have your customers’ data differentiation No-one can treat your customers the way you can © Decision Management Solutions, 2012 32
  34. 34. Case: Big Box RetailerBusiness challenges Solution Benefits$30+ billion retailer Marketing decision PersonalizedMore than 500 US engine recommendations,and 100 international Precisely targeted in new categorieslocations recommendations Deeper customerNeeded to grow Decision Management relationshipsbasket size System More visits, biggerExpand categories Data warehouse baskets1% response rates for Predictive analytics 15-18% responsedirect mail Business rules 2,000% increase © Decision Management Solutions, 2012 33
  35. 35. Questions?
  36. 36. Thank YouSign up for our newsletter, check out recordings and more at decisionmangementsolutions.com James Taylor, CEO james@decisionmanagementsolutions.com 35

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