This document summarizes a webinar about how retailers can implement individualized, one-to-one marketing using predictive analytics technology. It discusses how traditional batch marketing approaches can be replaced by approaches that target individual customers with personalized, relevant offers. The webinar introduces FICO's Retail Action Manager software, which uses customer data and predictive modeling to determine the optimal offers to send each individual customer. An example is given of a large electronics retailer that saw significant revenue increases by implementing this approach across email, websites and other channels.

1. A Segment of OneHow Retailers Can Change The Game This Holiday Season

2. About the PresentersJoel BookPrincipal,Marketing Research & Education GroupExactTarget, Inc. John KoltonowskiDirectorMarketing Solutions Retail/CPG PracticeFICO 30 years of experience in database marketing. Helped more than 100 BtoB and BtoC use data and technology to communicate and sell more effectively

3. Specializes in strategies and tactics to attract and retain customers using email, mobile and social media

4. Voted one of the “50 Most Influential People in Sales Lead Management” in 2009http://blog.exacttarget.com/blog/joel-booklinkedin.com/in/joelbookTwitter.com/joelbook Responsible for consulting with FICO clients to apply FICO Decision Management technologies in the marketing lifecycle.

5. 20 years of business and consulting experience, helping organizations build and strengthen customer relationships.

6. Helps to design and equip organizations with innovative solutions, leveraging automation and decision technologies to improve performance and achieve growth.linkedin.com/in/johnkoltonowskiTwitter.com/FICOretail© 2010 Fair Isaac Corporation.2

7. © 2010 Fair Isaac Corporation.3“Getting the right message to the right customer at the right time is now possible with interactive marketing and especially with mobile (as it’s sent to an individual vs. a household).Retailers need to break down silos between channels—focus on customer driven marketing.”Source: Gartner

8. Today’s WebinarIn this Webinar, you will learn:Why smart retailers are using predictive analytics technology to deliver pertinent and timely offers to individual customersHow you can use FICO® Retail Action Manager (RAM) to optimize decisions to ensure the right customer gets the right message at the right timeWhat you can do to optimize retail sales opportunities during the upcoming 2010 Holiday season

9. U.S. Retail SalesForrester Research predicts U.S. Online Retail Sales for 2010 will reach $173 Billion, and Web-influenced retail sales will total $1.21 Trillion

10. Retailing in 2010 – Key TrendsAbility to execute consistent promotions across channels is a key competitive differentiator for top retailers. Adoption of mobile is ramping up quickly. By 2014, smartphones will comprise 37% of global handset sales.Shift from “Segment” Targeting to “Individualized” TargetingIncreasing customer expectation and demand for offers that address their needs and interestsAdoption of advanced “sense and respond” technology that predicts (with accuracy) offers that are relevant and timely to individual customers

11. How is a “Segment of One” Different?From One to Many . . . to One to OneIndividualized MarketingSegment MarketingBatch & BlastCustomer-TriggeredCampaign CalendarCustomer LifecycleContactsDialogueBusiness & Channel SilosIntegrated & InformedSupplier FundingSupplier Targeting

12. Traditional Segmentation ApproachThis week, promote product XNot interestedthisweekInterestedthisweekSelect customers most likelyto want product XSend offer to entire subpopulation

13. Segment of One ApproachThis week, promote product XInterestedthisweekSelect customers most likelyto want product X NOW!Send offer to targeted individuals

14. Getting to a Segment of OneWhat Marketers Must Do:Develop and apply more insight about customersTrack behaviors and link to performanceUnderstand needs and attitudesRecord and use individual preferencesCreate messaging consistent to the individual, not the offerPredetermine the best offer for immediate deliveryOptimize marketing for ROI, practical constraints

15. Leveraging Customer InsightTo Drive Engagement And LoyaltyAct on KnowledgeSophistication of Retail PersonalizationRelevance

16. Engagement

17. Preference

18. LoyaltyUnderstand needs & attitudesTrack behaviorsKnow Customers Identify at all channelsCapture & validateSegment & valueInteract via preferred channelTriggered marketing & cross-sellTargeted messages, services & solutions

19. Relevance is Vital to SuccessDelivering relevant and timely offers can increase response rates by more than 30% (Source: Fair Isaac Corporation)Automating RelevanceIntroducing Retail Action Manager (RAM) Delivering relevant and timely offers to individual customers just got a lot easierWith RAM, you can: Discover WHAT individual customers are most likely to buy . . . and WHEN

20. Predict the likelihood of purchases, over time