ARPU Focus: The Anatomy of the New Customer Insight Empowered Telco

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Customer insight proficiency is no longer a luxury. It’s a requirement, especially now as communication providers are strategizing to increase average revenue per unit/customer (ARPU).

Learn more about a new breed of processes, approaches and enabling technologies that are making all the difference for insight-driven revenue, retention and loyalty in the communications sector. Join Dr. Patrick Surry to hear how providers are:
• Optimizing their data for greater “ease of insight”
• Empowering business stakeholders with greater analytic agility to quickly understand the right questions to ask
• Scaling with demand by enabling more staff resources to produce sophisticated models
• Moving from response modeling of the past to new incremental uplift strategies
• Devising a more effective means to share customer insight for profitable interactions across the enterprise

Watch this webinar to learn about best practices for customer insight empowerment!

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ARPU Focus: The Anatomy of the New Customer Insight Empowered Telco

  1. 1. The Anatomy of the CustomerInsight Empowered OrganizationDr. Patrick Surry, PhDGlobal Solutions Owner for Customer Analyticspatrick.surry@pb.comMarch 2013
  2. 2. Optimizing the customer journey
  3. 3. Driving the business with customer insight1. Make it easier2. Automate it3. Ask better questions4. Make it actionable!5. Big data?
  4. 4. Can we meet the demand for analysis? "Factory" Analysis Models/month Number of Latent Demand for Data-Mining Analysis "Craftsman" Analysis 1980 1990 2000 2010 Generations of ModelingThe traditional analytics expert is overwhelmed, with a project backlog dominated by “mundane”queries and modeling requests. They are valuable and scarce resources* * US BLS 2008: “Computer & mathematical science occupations” growing <4% CAGR over next ten years
  5. 5. Clear business case for self-service 5
  6. 6. Typical timeline (elapsed)From AAA’s presentation at NCDM 2010: “Modeling for Marketers: Understanding the Value of Pragmatic Analytics”
  7. 7. Time savings…More efficient data access… o Providing an analytics data structure would save 1.5 hours per project o Average of 13 projects per person per month x 7 employees total ➔ 126 hours per month saved!More productive team… o Started with team of two SAS programmers building models plus eight business  analysts working on business insight and ad hoc requests o PBS allowed full team to build models (5 x resource), each 3‐4 x fasterSelf‐service analytics… o Portrait Self Service Analytics [now Explorer] off‐loads simpler requests o Customer view drives standard published reports
  8. 8. Reinventing customer selectionNew Tools are Needed• Easier to use• More consumable• Greater capacity to scale Portrait Explorer … “makes navigating and understanding your customer data as easy as using your digital photo album”
  9. 9. Driving the business with customer insight1. Make it easier2. Automate it3. Ask better questions4. Make it actionable!5. Big data?
  10. 10. Embedded predictive modelsBusiness Challenge: Optimize mass-media buying using direct-marketing methodologiesLogicLab, a wholly owned subsidiary of Merkle, applies deepmarketing analytics to the media buying process of Benefitsevaluating, optimizing and purchasing advertising. Closed-loop automated modeling to refresh thousands of media propensity models on a regular basisLogicLab Match Analytics lets advertisers match customerdata to media properties, identifying the most effective media Score target customer lists on demand with all media modelsto reach desired new and existing customer segments. to deliver overall or segment-based media preference profilesMedia buyers can optimize media mix, reduce costs, andaccelerate media evaluation, with quantitative ROI metrics. Builds ~3000 models (data typically 15K rows x 1000 columns) and scores 180,000,000 cases (all targets x allPortrait’s automated modeling methodologies allow LogicLab models) nightlyto model thousands of media properties against hundreds ofdemographic attributes and score individual target Results for targeted media show above-average responsecustomers against every potential media property. rates at significantly reduced cost per inquiry “We have always believed that the marketplace only thrives with ingenuity and innovation,” said Chris Wilson, president of LogicLab. “LogicLab is honored to receive recognition from the DMA for our technical advancements in the Broadcast Media category, and we are very excited to bring this new capability to our clients.”
  11. 11. Automation flowchartMedia on-boarding: match each new media audience against universe and create lookalike modelTarget on-boarding: match target households against universe and score for every media propertySegment selection & media ranking: user interactively selects target subset, and projected RoI forevery media property is aggregated dynamically
  12. 12. Simple end-user experience
  13. 13. Driving the business with customer insight1. Make it easier2. Automate it3. Ask better questions4. Make it actionable!5. Big data?
  14. 14. Uplift: predicting retention marketing impact If we target, customer will: StayIf we do nothing,customer will: Churn Stay Churn
  15. 15. The U.S Presidential Election. You’re a Democrat.Where would you spend your marketing budget?
  16. 16. Persuadables – Where the Marketing Dollars will really go
  17. 17. Uplift answers the right questionConventional approach: Prob (purchase | treated) (“probability of purchase if treated”)Uplift approach: Prob (purchase | treated) – Prob (purchase | not treated) (“probability of purchase if treated minus probability of purchase if not treated”)
  18. 18. Understanding the key role of control groups Portrait Uplift will enable your organization to: The Impact: (A) understand what actually makes these people different from the rest Reduce campaign size 20-60% (B) predict which specific customers can be persuaded to change their behavior next AND Improve results by 30-300% (C) AND find more persuadable customers than the prior method Would have Happened Anyway Purchase Purchase True Impact of Behavior was Actually Changed the Campaign All Customers Control Group  Treated Group All Customers My Target Group (will not receive the  (will receive the offer/treatment) NO Purchase NO Purchase offer/treatment) What % will purchase What % will purchase If treated? If untreated?
  19. 19. Uplift business case: a double-win
  20. 20. Significant bottom-line results• Is your “response” model really a “buy” model?• Are you predicting who will leave, or who you can save?
  21. 21. Driving the business with customer insight1. Make it easier2. Automate it3. Ask better questions4. Make it actionable!5. Big data?
  22. 22. Powering the customer interaction hub Customer  Any questions  Documents Customer enters  on text  generated and  preferences promo? Btw,  mailed special  discount on  new cases… Thank you for  updating your  preferences! Offer  acceptance  feedback  Ideal promo:  survey Unlimited Text  Please  Last day of  Value  update your  Unlimited  reinforcement  ‐ preferences Text promo you saved $X  this month Your Business
  23. 23. Nationwide Building Society ~ 15M customers ~ 15,000 employees > £120bn assets ~ 680 branches > 2300 ATMs > 2M registered internet users
  24. 24. Nationwide Building Society
  25. 25. Driving the business with customer insight1. Make it easier2. Automate it3. Ask better questions4. Make it actionable!5. Big data?
  26. 26. Don’t believe the hype Big Data is #1 … of the … “Most Confusing Tech Buzzwords of the Decade” -- Global Language Monitor (2012)
  27. 27. Dark data? Do we really need more data? First let’s use what we’ve already got!
  28. 28. Leverage spatial context Managerial and Professional 61.4% Bachelor’s Degree 35.4% Two Person Household 34.8% High Density of Large UniversitiesCustom geo- Age 35 to 44 years 27.4% High Concentration of Restaurants and Barsdemographic overlay High Saving Balance High Employment Very High Daytime Work PopulationSocial data (i.e. check-ins)for people, activity & eventsBusiness ConcentrationGeo/Reversed geo-coding More relevant interactions
  29. 29. Network (inter-customer) analysisRelationships between customers help paint a clearer portrait,compared to treating each as an isolated individual
  30. 30. Text & social analyticsReal‐time annotated social media data feed: 85+ million social and  COMMAND CENTERonline sources SOCIAL PIPELINEEnriches and tags the dataExtracts people, places, things, events ANALYZE RESPOND Deep sentiment, root cause analysis and trending Social customer engagement solution
  31. 31. Driving the business with customer insight1. Make it easier2. Automate it3. Ask better questions4. Make it actionable!5. Big data?
  32. 32. Thank you!Coming up on April 2 – Follow the Leaders: Connecting Data to UncoverYour Most Influential Telecom CustomersFor more see Eventspan.com , search Pitney Bowes, and click on Follow the LeadersDr. Patrick Surry, PhDGlobal Solutions Owner for Customer Analyticspatrick.surry@pb.com

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