Vantiv-Kalvin Presentation at CBIG event


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Scott DeAngelo - SVP Pricing, Vantiv
Sarah Barber - Director, Pricing, Vantiv
Shankar Ranganathan - VP Analytics, Kalvin

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Vantiv-Kalvin Presentation at CBIG event

  1. 1. InstitutionalizingAnalytics intoDecision MakingCincinnati Business Intelligence Group Presenters:Cincinnati Business Intelligence GroupNovember 15, 2012Presenters:Scott DeAngelo, Senior Vice President ofStrategic Pricing & Portfolio Management,VantivSarah Barber, Director of Strategic Pricing& Portfolio Analytics, VantivShankar Ranganathan, Vice President ofAnalytics & Strategy, Kalvin
  2. 2. Merchant Services Financial Institution ServicesCard IssuerProcessingMerchantAcquiringNetworkServicesA Leading Integrated Payment Processor in the U.S.#3 Ranked U.S. Merchant Acquirerin Total Transactions#1 Ranked U.S. Merchant Acquirerin PIN Debit Transactions#2 Ranked U.S. Merchant Acquirerin Transaction Growth9% Market Share in the U.S. basedon number of FI customers1,300 Financial Institutionrelationships across the U.S.Vantiv is Well Positioned as a Market Leader
  3. 3. Leading MerchantServices ProviderLeading FinancialInstitution Services ProviderSingle, IntegratedTechnology Platform12b+ Transactions at 400k+ Merchant LocationsProcessed Annually through a Single PlatformProprietary Technology PlatformIntegrated BusinessComprehensive Suite of ServicesDiverse Distribution ChannelsStrong Execution Capabilities
  4. 4. Hot Trends• EnhancedExposure• Expanded• ExpandedOpportunity• “Major” Areaof Study
  5. 5. • Up-front vs.Back-end• Speed vs.Hot Mess• Speed vs.Accuracy• Form vs.Functionality
  6. 6. 5 things we’re doing to acceleratethe Institutionalization of Analyticsinto Decision Making at .
  7. 7. 1. Defining & ScopingWhat Analytics Is
  8. 8. Macro LevelDescriptive PredictiveAnalytics!?!? Analytics!?!?Micro LevelDescriptive PredictiveAnalytics!?!? Analytics!?!?
  9. 9. Macro LevelDescriptive Predictive“Top of House”FinancialsMonthly BusinessForecastsMicro LevelDescriptive PredictiveSegment SpecificReportingCustomer LevelPredictions
  10. 10. 2. Location, Location,Location
  11. 11. 3. Managing the “All orNothing” Mentality
  12. 12. Where We Will BeWhere We AreWhere We AreWhere We Were
  13. 13. 4. Balancing Accuracy& Understandability
  14. 14. “The test of a first rate intelligence is the ability to hold twoopposing ideas in mind at the same time and still retain theability to function.”-F. Scott FitzgeraldKey lessons learned from datavisualization at
  15. 15. Data tells the narrative…Opposing ideas by default work against each other.But if we think of opposing ideas like a magnetic force-- the very force thatcauses like magnets to push against each other also causes attraction.To get them to work together all relies on how they are positioned.…if that data is well-positioned
  16. 16. Visualizations deliverorganizational buy-in.Total Signature Revenue by Month – Vantiv Merchant DirectFeb. ’12$18,000,000$20,000,000Pricing EffectSpring ’11Pricing ActionsFall ’11 PricingActions+DurbinJanuary ’12Pricing ActionsAction 1 Action 2 Action 3Incremental$-$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000$16,000,00002/01/1003/01/1004/01/1005/01/1006/01/1007/01/1008/01/1009/01/1010/01/1011/01/1012/01/1001/01/1102/01/1103/01/1104/01/1105/01/1106/01/1107/01/1108/01/1109/01/1110/01/1111/01/1112/01/1101/01/1202/01/12Volume Effect29%oftotal42%oftotal50%oftotalBaseline
  17. 17. Visualizations deliverorganizational buy-in.Z%Revenue by Industry Revenue Margin by Industry24%29% 32%100% = $_B $_B $_BX%Y%27%23%19%48%48%49%2010 2011 2012Industries 5-7Industries 2-4Industry 1
  18. 18. Keep it Simple, Statistician.Simplicity elevates insight to value.
  19. 19. Get in the weeds…… But don’t get lost.
  20. 20. 5. Pushing Intelligenceto the “Front Line”
  21. 21. From Push to PullPresenting intelligence through datavisualization pulls executive strategies to thefront-line
  22. 22. Discover the “Unknown Unknowns”- Donald Rumsfeld
  23. 23. Real Time and Proactive – What is it?
  24. 24. Decision SetPredictandActInformationSetReal Time and Proactive – What does it take?AnalyticsProcessAction DistanceProcessSource: Richard Hackathorn at
  25. 25. So, what is Analytical Process?• Shifts in MarginBusinessProblem• Attrition issue• Lower Margin CustomerAcquisition• Volume Mix ShiftAnalytics• Health CheckDashboard• CustomerMigration Report• Price/AttritionAlertsInformation• Volume Mix ShiftAlerts• Cross Sell• Up Sell• Reduce Price• Add-OnActivateOperationalizeand updatestrategy•KPIs•Dashboards•ROIMeasure
  26. 26. Speed of Analytics – Why business reaction is slow?BusinessValuebusinesseventdatastoredinformationdeliveredBusinessCaptureLatencyAnalysisLatencyDecisionLatencyTimeactiontakenCapturedBusinessValueSource: Richard Hackathorn at TDAN.comLost
  27. 27. Speed of Analytics – How can we increase speed?businesseventdatastoredinformationdeliveredBusinessValueTimeactiontakenBusinessCapturedBusinessValueSource: Richard Hackathorn at TDAN.comLost
  28. 28. Speed of Analytics – Getting Real Time …….businesseventdatastoredinformationdeliveredactiontakenBusinessValueLostTimeCapturedBusinessValueSource: Richard Hackathorn at
  29. 29. Data to Insights - How Traditional Process works?Data sourcesData Integration Data MartsPresentationToolDecision MakersReportConsumersIntegrated Data Warehouse and BIDataAnalyticsPresentationToolBusinessAnalystsDataAnalyticsEnd to End Data Analytics Solution6-8 months 6-8 months 6-8 months
  30. 30. We are building data and delivering insights at the sametimeData sourcesData Integration Data MartsPresentationToolAnalystsandBusiness UsersIntegrated Data Warehouse and BIEnriched andIntelligent DataPresentationToolFeedback Process ( Update Analytical Models)KalvinTellTM– AnIntegratedSolution AnalyticalEngineDecision MakersAnalystsBusiness UsersDecision MakersAnalytical Data Synchronization
  31. 31. KalvinTellTM– An Integrated Analytical Engine for fasterturnaroundDataIntegrationLogicReportCalculations& BusinessRulesDataQualityLogicDataSecurityLogicMultipleRegressionSurvivalSegmentationProbabilisticModelData sourcesKalvinTellTM – an automatedend-to-end solution withup-to-date predictiveanalytics embedded withindata layerKalvinTell™(Kalvin’sAnalyticalEngine)GrowthTargetedaudienceWebIDashboardsUpsidepotential ExplorerAttritionRatePricingStrategyMobility
  32. 32. Merchant Centric Analytics RoadmapDiagnosticsHealthCheckReportingPredictiveAnalyticsMerchantEngagement& Growthenables...todrive...togrow...– Customer MigrationReporting– Retention Modeling – RelevantCommunications– AnalysisReporting– Key Drivers & Metrics– Customer Loyalty– Customer attrition– Attrition Modeling– Revenue and MarginForecasting– Pricing StrategyCommunications– MerchantProductEnhancements– MerchantBehaviouralSelection(targeting)– Trends– Segmentations– Capturerelevantattributes
  33. 33. Real Time inDaysWhat? What Next?Pricing andAttrition AlertsCross Sell orUp SellReal Time inMonthsWhat? What Next?MerchantCentricSegmentation
  34. 34. 36Key Takeaways
  35. 35. Thank You!Thank You!