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

1. 5 Benefits of Customer
Decision Management
James Taylor
CEO

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. Decision Management

4. Decision Management is the
proven approach used to
manage decisions
independently and effectively
apply business rules and
predictive analytics
© Decision Management Solutions, 2012 3

5. Decision Management Systems
Agile
Analytic
Adaptive
© Decision Management Solutions, 2012 4

6. Decisions About
Customers

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. Operational Decisions Are Everywhere
© Decision Management Solutions, 2012 7

9. Decisions Implement Customer Strategy
© Decision Management Solutions, 2012 8

10. Decisions Maximize Customer Value
© Decision Management Solutions, 2012 9

11. Decisions Scale For Large Impact
Strategic
Decision
Tactical
Decision
Operational
Decision
© Decision Management Solutions, 2012 10

12. Targeting Customers More
Accurately

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. 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. Case study: Cable TV
Business challenges Solution Benefits
1.2M households Predictive analytics to 13-18% cross-sell hit
Many single-product predict churn, cross-sell rate on average
households Business rules use Up to 40% cross-sell
Whole industry suffers analytics and data to success rate for some
from low loyalty and drive dynamic scripts
Teams using the scripts
20%+ customer churn Embedded in call center have more sales
Increasing competition application to improve
decision making Reduced churn by 20-
and changing regulations 30%

16. Reacting To Customers In
Real Time

17. Reality Check
People don’t make
many of the
Systems do
decisions that affect
your customers
© Decision Management Solutions, 2012 16

18. Latency In Decisions Costs You
Business
event
Decision latency
Action
taken
© Decision Management Solutions, 2012 17

19. Analytics Must Drive Action
Operational
Systems Decision
Management
Systems link
Decision analytics to
operational
systems
Analytic
Systems
© Decision Management Solutions, 2012 18

20. Case: European Bank
Business challenges Solution Benefits
1.7M customers Churn, cross-sell, up- Right offer at the
640 branches sell, attrition and next right time through
best action models the right channel
Need to increase
sales, reduce churn Analytic segmentation 20-30% campaign
Decision made for response
Changing interactions
with the bank every customer
4-5% campaign in every campaign
response
© Decision Management Solutions, 2012 19

21. Keeping Up With Rapid
Business Change

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. 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. Case: Beauty Retailer
Business challenges Solution Benefits
Inflexible loyalty POS rules-based Four-fold increase in
program calculation of loyalty promotion agility
discounts
Costly and labor- 20% lift in sales in one
intensive campaign Automated loyalty year
implementation offers delivered through
Reduced costs
re-printable card
Confusing and time-
Improved customer
consuming for in-store Business definition and
experience
staff management of
campaigns
© Decision Management Solutions, 2012 23

25. Agile, Industrial Analytics
© Decision Management Solutions, 2012 24

26. Ensuring Consistency In A
Multichannel World

27. Consistency Across Channels
Decision
© Decision Management Solutions, 2012 26

28. Case: Retailer
Business challenges Solution Benefits
Grocery chains are Tailored promotions Increased revenue
battling for market integrated with loyalty Deep knowledge of
share program customers across
Customer loyalty is Integrated system from formats
essential for growth back office to point of More effective
Loyalty to the brand, sale promotional campaigns
not a single store Consistently compelling
format offers across channels
© Decision Management Solutions, 2012 27

29. Keeping Costs Down With
Scalable Solutions

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. Better more profitable
customer relationships

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. 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. Case: Big Box Retailer
Business challenges Solution Benefits
$30+ billion retailer Marketing decision Personalized
More than 500 US engine recommendations,
and 100 international Precisely targeted in new categories
locations recommendations Deeper customer
Needed to grow Decision Management relationships
basket size System More visits, bigger
Expand categories Data warehouse baskets
1% response rates for Predictive analytics 15-18% response
direct mail Business rules 2,000% increase
© Decision Management Solutions, 2012 33

35. Questions?

36. Thank You
Sign up for our newsletter, check out
recordings and more at
decisionmangementsolutions.com
James Taylor, CEO
james@decisionmanagementsolutions.com
35