Portrait uplift and optimizer deck

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Portrait uplift and optimizer deck

  1. 1. Understand, Visualize and Predict Customer Behavior The CRM “Customer-centricity Chasm” Customer Interaction Hub Illustrated Demo Customer Case Study Snap Shot Market Leading Analyst Recognition INSIGHT ACTIONHome
  2. 2. Customer Analytics Maturity Model • Commence at any stage Real-time Decisioning • Benefit from a clear • Inbound contextual RTD ACTION roadmap to success • Adaptive learning Real-time Scoring • Eliminate customer lists, mass-scoring • Up to the second outbound selection accuracy Optimize Contacts • Analytically match customers with right offer, at right time, via right channel, balanced against business constraints Predict Uplift • Predict persuadability; eliminate sure things, lost causes, sleeping dogs INSIGHT • Reduce spend 40% while improving outcome 30-300% Understand & Predict Behavior • Predict and define ideal target customer segments • 3D visual customer data mining & automated modeling Explore Customers • Uncover areas of interest and opportunities to act • Ad hoc, thin-client customer data exploration for the business user (Underpinned by customer data access, generic BI & reporting tools) INSIGHT ACTIONHome
  3. 3. The CRM “Customer-centricity Chasm” DATA INCREMENTAL CRM CRM TOUCH POINTS Right message, right time Customer Profile Dialogue across touch points Optimize engagement “Line of sight” Transaction Infuse customer-specific insight into touch points Channel Lines of Business Understand past behavior Predict future needs “Hindsight” “Hindsight” “Foresight” “Foresight” What | Why | Next | Change Customer Preference INSIGHT ACTIONHome
  4. 4. Optimized Customized Customer Interactions Customer We sent you Customer completes an email Documents survey generated yesterday – and mailed do you have any Thank you for questions? updating your preferences! Offer acceptance feedback Ideal promo: survey Unlimited Please Text update Last day of Value your Unlimited reinforcement preferences Text - you saved $X promo this month Your Business The Results • Improved customer experience • Increased customer satisfaction and advocacy • Increased customer value, wallet share • Improved customer retention • Single source for customer preferences INSIGHT ACTIONHome 4
  5. 5. The CRM “Customer-centricity Chasm” Expectation Reality • We understand them • Product-centric campaigns • We value their business • Operationally focused • We deliver on our promises • Information & channel silos • We remember them • Independent business units • We strive for relevancy • Customer ad fatigue • We are connected • Limited capacity for engagement “What customers expect from us” “What we actually have” INSIGHT ACTIONHome © 2011 Portrait Software - A Pitney Bowes Business Insight Company
  6. 6. INSIGHT ACTIONHome
  7. 7. Optimizing Customer Interactions Mobile Web Kiosk / Email INTERACTIVE PROACTIVE ATM Mail IVR Contact Center “Outbound” “Inbound” Channels Channels INSIGHT ACTIONHome
  8. 8. The Portrait Suite Fulfill. Recommend. Orchestrate. Optimize. Predict. Understand. Explore. INSIGHT ACTIONHome
  9. 9. What’s it Worth? Financial Services Telecommunications Products held per 36% increase in churn reduction customer up by 50% Customer retention up >20% 20% reduction in churn Immediate increase in customer retention Incremental revenue up 327% Reduced marketing costs >DK100,000 PA Reduced marketing costs by >10% Churn decreased by 37.5% ROI from a single campaign Emerging Markets Increased revenue by $1.2M per month Insurance Customer retention up 300% Incremental revenue of £48M “Immediate increase in renewals” Profitability rose 10% Uplift doubles customer retention Revenue per customer 314% higher INSIGHT ACTIONHome
  10. 10. Home Information Quality Data Quality Tools Data Integration Tools INSIGHT DATA Predictive Analytics & Data ACTION Mining Customer Data Mining 5 Magic Gartner The ONLY Quadrants INSIGHT vendor on all DQ DI Cross-channel Comms Mgmt Multi-channel Comms Mgmt MCCM CCCM CDM STRATEGY Document Output Customer Service Contact Ctrs The ONLY vendor on all 4 Waves PBBI – Customer Communications Management IQ CCCM DOCCM PA/DM COMMUNICATION
  11. 11. Forrester’s View of Inbound & Outbound CM Dialogue Customer Analytics Foundation Interaction Analytic Fulfillment Insight Interaction Optimizer INSIGHT ACTIONHome
  12. 12. Overview Case Study: Retention (Telecommunications Example) Case Study: Cross-sell (Financial Services Example) Case Study: Cross-sell (Retail Example) INSIGHT ACTIONHome
  13. 13. Portrait Uplift Predict the “persuadables” that will react to your marketing. Portrait Uplift empowers you to focus your marketing INSIGHT - PREDICT upon only those customers that will positively change behavior as result of your message. Benefits • Award winning solution – Predict change in • Eliminate behavior marketing waste  Predict which customers are Persuadables, while weeding out Sure Things, Lost Causes and • Reduce Sleeping Dogs. customer ad- • Spend your marketing funds only where it Uplift Segmentation fatigue, opt-out & will have an impact attrition  Boost impact by 30-300%  Reduce cost by 40% • Boost return on • Increase analytic bandwidth and throughput marketing  Automate Uplift modeling best practice investment  Build more accurate uplift models in a fraction of the time INSIGHT ACTIONHome
  14. 14. “Uplift analysis is a must-consider concept for every organization with significant campaign management activities”. Gareth Herschel, Gartner, “Predictive Modeling Now more than Ever”, Gartner Customer 360, March 2011 INSIGHT ACTIONHome
  15. 15. Uplift Segmentation for Retention Marketing If we target, customer will: Stay If we do nothing, customer will: Churn Stay Churn INSIGHT ACTIONHome
  16. 16. Uplift Segmentation for Cross-sell Marketing If we target, customer will: Buy If we do nothing, customer will: Not Buy Buy Not Buy INSIGHT ACTIONHome
  17. 17. Incremental Impact for Response Positive No impact Negative 120% impact impact 1 Persuadables: Only buy if treated Proportion of incremental effect 100% Put this money 2A Sure Things: 80% back into your Buy whether you marketing budget 2 treat or not 60% 1 2 3 2B Lost Causes: Won’t buy whether 40% you treat or not 3 Sleeping Dogs: 20% Buy unless you treat 0% 0% 20% 40% 60% 80% 100% Proportion targeted INSIGHT ACTIONHome 17
  18. 18. Customer Case Studies Business Challenge: Targeting for customer churn campaigns but lower campaign costs The Telenor Group is currently ranked as one of the Benefits world’s largest mobile operators (in terms of subscriptions). Mobile subscriptions rank at 168 • Traditional targeting reduced churn by million worldwide with telecom operators in 13 5%, but with significant negative effects countries. • Uplift model reduced these significantly • Saving 40% of treatment costs Portrait Customer analytics assisted Telenor in delivering next generation targeting for customer • Further reducing churn to 6.8% retention (churn) campaigns Removing negative effects • Fully automated data build from Teradata thus decreasing both churn and campaign costs • Sun Solaris server • 3 m customers, > 300 variables Results Without Uplift improved Reduction in 36% Overall Churn With Uplift Introduction of first prediction Introduction of model refined 5% 6.8% 25 % prediction model 23 % 20 % 20 % 19 % 19 % 18 % 18 % 17 % annual defection rate 16 % Without Uplift 15 % 15 % 14 % 15 % 14 % 14 % 14 % 13 % 13 % Treated 13 % 12 % 12 % 11 % 11 % Volume 11 % 11 % 11 % Treated volume 10 % 10 % 10 % With Uplift reduced by 40% 9% 9% 8% 9% 5% 60% 100% 0% months 07 7 07 08 8 7 07 7 7 08 07 07 7 07 07 r.0 .0 .0 l. 0 t.0 .0 v. b. b. g. n. n. n. p. s. ar ar ai ju ap ok no fe fe ja ju ja au se de m m m Konkurrentchurn Eksternchurn INSIGHT ACTIONHome
  19. 19. Interactive Visual Insight Mobile subscribers and defection distributed across geographic regions in Norway Blue indicating high defection rate Green indicating low defection rate INSIGHT ACTIONHome
  20. 20. Dramatic Impact to Customer Retention Introduced churn model 25 % 23 % 20 % 20 % 19 % 19 % 18 % 18 % 17 % annual defection rate 16 % 15 % 15 % 15 % 14 % 14 % 14 % 14 % 13 % 13 12 % 11 11 % 10 % 10 % 5% 0% months 7 07 7 07 7 7 07 07 07 7 r.0 .0 l. 0 t.0 .0 v. b. g. n. n. p. ar ai ju ap ok no fe ja ju au se m m INSIGHT ACTIONHome
  21. 21. Typical Telco Retention Campaign Results Annual defection rate - Mobile retention campaign Yes - renewal 3.5 % Control group 33.0 % Reject - renewal 51.2 % 0% 10 % 20 % 30 % 40 % 50 % 60 % • Can we predict “save-ability” rather than churn risk? INSIGHT ACTIONHome
  22. 22. Uplift Business Case: a Double-win INSIGHT ACTIONHome
  23. 23. Dramatic Impact to Customer Retention Introduced churn model Introduced Uplift model 25 % 23 % 20 % 20 % 19 % 19 % 18 % 18 % annual defection rate 17 % 16 % 15 % 15 % 15 % 14 % 14 % 14 % 14 % 13 % 13 % 13 % 12 % 12 % 11 % 11 % 11 % 11 % 11 % 10 % 10 % 9% 10 % 9% 9% 8% 5% 0% months 07 7 07 08 8 7 07 7 7 08 07 07 07 07 7 r.0 .0 .0 l. 0 t.0 .0 v. b. b. g. n. n. n. p. s. ar ar ai ju ap ok no fe fe ja ju ja au se de m m m Konkurrentchurn Eksternchurn INSIGHT ACTIONHome
  24. 24. Customer Case Studies Business Challenge: Inability to target the customer with the most relevant message U.S. Bancorp (NYSE: USB), with $266 billion in assets, is the parent company of U.S. Bank, the 6th largest Benefits commercial bank in the United States.  Incremental revenue increased 327%  >$500K incremental revenue per campaign US Bank engaged Portrait Software and its team of experts  Reduced baseline cost from lower volume to produce and trial an Uplift model that had the ability to  189% increase in incremental response by generate data models which would lead to the incremental avoiding negative effects (downlift) performance and improved customer experience that US  Campaign ROI increased from 75% to 400% Bank was striving to achieve. in 5 years  Increased incremental cross-sell revenue by more than 300% $1,000,000 1000% $900,000 900% $800,000 800% $700,000 700% Net Income $600,000 600% RoI $500,000 500% $400,000 400% $300,000 300% $200,000 200% $100,000 100% $- 0% Decile by uplift score INSIGHT ACTIONHome
  25. 25. Highlights: Location-data Integration Business Challenge: Find more cost-effective ways to acquire new DDA customers using direct mail U.S. Bancorp (NYSE: USB), with $266 billion in assets, is the parent company of U.S. Bank, the 6th largest : Location Enhanced commercial bank in the United States. Benefits  Turned around campaign from loss to profit US Bank use direct mail to entire postal routes to acquire  91% increase in incremental revenue new DDA customers, but low response rates and lift versus  Generate additional $300K per campaign control made even their best targeting models unprofitable.  Can either reduce volume with same net adds, Portrait Uplift delivered more effective targeting models using or achieve more net new DDAs with same volume existing data, and achieved campaign profitability by enhancing with new location-based attributes such as local product penetration rates and nearest branch drive time. Incremental Revenue ($’000s) +91% Break-even Location-enhanced +41% Uplift Model Portrait Uplift Model Previous champio n INSIGHT ACTIONHome
  26. 26. Customer Case Study: Uplift in Retail Business Challenge: Improve incremental revenue from monthly consumer catalog mailings Fortune 50 company with $60B+ annual revenues that sells about 140K PCs / day. It has nearly 2B customer interactions per year, including about 15M direct mail catalogs per month. Benefits Increased revenue by $1.2M/month at existing mailing Portrait was challenged to develop an Uplift model to volumes, or $2.5M/month with more focused targeting increase the incremental revenue delivered by monthly  Validated in blind trial and now in market, with software catalog mailings compared to existing response and and services hosted by this company’s MSP value based targeting.  Demonstrated applicability to individualized email versioning, with $250K additional revenue in a small test Uplift model delivers $2.5M more revenue ($500K more profit) INSIGHT ACTION Home26
  27. 27. Example reduced monthly mailing volume In-house Model Uplift model delivers incremental lift by 88% over existing model Example Reduced Targeting ~30% of mailable universe INSIGHT ACTIONHome
  28. 28. August Mailing Results August Uplift Results 300% 250% Incremental Revenue Index 200% 150% 100% 50% 0% 1 2 3 4 5 Quintile The actual mailing for the Development audience produced $612K incremental revenue at full volumes, but would have done over $1.3M at the recommended 40%, and over $3.1M over no mail INSIGHT ACTIONHome
  29. 29. Portrait Optimizer Allocate your marketing for maximum impact & mutual benefit. Portrait Optimizer is a contact optimization solution that INSIGHT - OPTIMIZE can optimally allocate your marketing spend where it will have the greatest impact, across campaigns and customers, for utmost ROI. Benefits • Optimize • Analytically weighs your business’ constraints vs. expected benefit marketing ROI to determine the right mix of offers & channels for individual customers • Eliminate • Improves customer-centricity while enforcing Achieve Contact marketing waste constraints, and improving financial outcome Optimization  Constraints include eligibility, quantity & value Best Practice • Boost relevancy  Considers preferences, propensity & persuadability • Flexible framework • Reduce  Optimize offers, message, channel, product, incentive, customer ad- time frame and more fatigue & • Dual interface opt-out  Foster alignment across marketers and analyst teams INSIGHT ACTIONHome
  30. 30. How does Offer Optimization Work? THIS GOES IN THIS COMES OUT For Each For Each Offer Customer • The right offers… • Allocated to the right customers… • To maximize overall impact. … while satisfying all the constraints. INSIGHT ACTIONHome
  31. 31. Highlights: Contact Optimization • Maximize return from direct marketing with business constraints  Eligibility, quantity and financial constraints  Includes customer preferences, propensities and “persuadability”  Increases customer-centricity • Broad optimization framework  Optimizes offers, message, channel, product, incentive, time-frame • Seamless integration with campaign planning  Marketer view (Portrait Dialogue)  Analyst view (Portrait Customer Analytics) INSIGHT ACTIONHome
  32. 32. Portrait and Microsoft Dynamics CRMInfusing Customer-centric Insightinto Microsoft Dynamics CRM
  33. 33. Dynamics CRM – Interaction History INSIGHT ACTIONHome 3
  34. 34. Outbound Messages Received by individual contacts sent via Portrait Dialogue INSIGHT ACTIONHome
  35. 35. The history of the Real- time next-best-offer recommendations made to Real-time next-best-offer the Contact are listed for recommendations are made as the Rep’s reference determined by rules & models built in Interaction Optimizer INSIGHT ACTIONHome
  36. 36. Once presented to the Contact, the Rep can assign a disposition of Accept, Decline, or NoAction. The Rep can also view the details of the Campaign as set-up in CRM INSIGHT ACTIONHome
  37. 37. Infuse Customer-centricity into Dynamics CRM The applications you use today Made intelligent Using your own data INSIGHT ACTIONHome
  38. 38. Dynamics CRM and PCM - Architecture Overview G Bran Bran ch A D SharePoint Report Center ch Branch B C Real-time Campaign History Portrait Create Dialogue Task CORE CRM Core CRM Create Event CRM DB (Accounts, Contacts, Prospects) INSIGHT ACTIONHome Slide 38

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