DDMA / Chordiant: Online Marketing
description
Transcript of DDMA / Chordiant: Online Marketing
Event: DDMA iLounge
Thema: DM 2.0
Spreker: Hugo Koopmans – Chordiant
Datum: 26 september 2007, De Balie Amsterdam
www.ddma.nl
Inbound marketing :van cost naar profit centre
Hoe het ‘Next Best Action’
paradigma voor meer
omzet,service en loyaliteit
zorgt.
Contents
1. O2 CRM Transformation Programme
2. An Example campaign
3. The Next Best Action paradigm
4. Vision
5. Conclusion
6. Chordiant Centralized Decisioning
What is the CRM Transformation Programme?The CRM Transformation Programme is changing the way O2 sustains relationships with its customers through:
• enabling consistent and intelligent customer decisioning,
• for a consistent customer experience,
• that will provide for consistent and improving business performance.
To do this O2 will be:
• changing the way people work in Marketing,
• changing how the contact centres operate,
• increasing collaboration between marketing, sales and customer service.
It is providing:
• predictive data mining and strategy management tools,
• a robust customer data set for acquiring customer insight,
• real-time execution of customer intelligence and access for multiple touch points.
What is being transitioned
FROM TO
Strategies (customer intelligence)
Mass / selections Targeted
Marketing campaigns Silo managed serial campaigns
Coordinated permanent initiatives
Processes & Practices Autonomous / connected Collaborative
Contact Centres Service Sales from service
Customer (marketing) interactions
Outbound Inbound & outbound
Propositions Push sales Justified & timely
Technology (driven by those above)
Linda Intelligence Factory
Foundation Blocks CRM Transformation Programme
Data Mining
Strategy Management(Decision Engine - Campaign Integration)
Decision Engine(Operational Decisions)
CustomerPlanning
Capex
Revenue
(£ x k)
+ (£ x m)
+ (£ xx m)
£0
+£ 5 m
+£ 10 m
+£ 100 m ?
Phase 0
Phase 1
Phase 2
FullRollout
An example campaign :
Evaluation of Summer Roaming PromotionWe think it is a great campaign!
What were we trying to achieve?
• We wanted to see as many customers as possible to start roaming for
the first time this summer because of our communication.
• We wanted to see if the propensity model generated higher:
– Response
– Roaming calls and duration
• What is the best media for this communication.
Which customers are more likely to roam?
If a customer tops up more then £8
per month, it increases
probability to roam by 7%
Customers with Nokia Handsets
have higher probability to start
roaming If a customer uses a credit card for top ups, and the higher
the amount the more likely they are
to roam.
Online Customers have the highest
probability to start roaming
The more customers use
their voicemail the more likely they are
to start roaming
Propensity Model
Customers Who Roamed After the Promotion
Roamed Rate ( as a result of communication)
0%
2%
4%
6%
8%
10%
12%
SMS Email DM
Comms Channel
% R
esp
on
se
Model Control
• Effect of the propensity model on response rate 5.7%
• Effect of the propensity model + an offer 7.7%
• E-mail is the channel that generated the highest response rate (10% uplift compared to the
control)
• DM was the least effective and the most expensive channel.
• Fantastic results, considering our previous roaming promotions generated below 1% incremental
response rate.
Number Roamed Contacted Number % Uplift
SMS 586,197 103,890 17.7% 7.0%EMAIL 87,508 18,086 20.7% 10.0%DM 239,557 39,923 16.7% 6.0%CTRL SMS 709,142 82,422 11.6% 0.9%CTRL EMAIL 82,122 11,993 14.6% 3.9%CTRL DM 249,988 29,426 11.8% 1.1%No Comms 100,000 10,673 10.7% 0.0%Total 2,054,514 296,413 14.4%
Roamers
Net effect of the proposition £1,170,000 (forecasted £57,000)
The Next Best Action paradigm
The Next Best Action Business Opportunity
Today, overall customer interactions amount to a significant total contact time
Average interaction time / yr
3 hr 22 mPer customer
= 40x advertising budget
Branch
Web
Call Centre
ATM
Customer Channel Activity
1,7
1,8
1,5
8,4
Average interactions per month
Return on InteractionReturn on Interaction
Trivial Next Best Action Strategy
MMSPropensity
BroadbandEligibility
Travel ServicesPropensity
BroadbandPropensity
Travel ServicesEligibility
MMS Eligibility
BroadbandProposition
Travel ServicesProposition
MMS Proposition
Best Offer
BestAction
Credit RiskPrediction
Risk MitigationStrategyIs there a credit risk?
If so, how to respond?
ValuePrediction
RetentionProposition 1
ChurnPrediction
RetentionProposition 2
ChampionChallenger
RetentionMatrix
Is there a churn risk?If so, should we invest in retention? If so, how to
retain?
If there are no risks, what sales proposition should be made and in
what way?
What is Vision?
Vision is a an application to assist advisors to make the most appropriate and relevant offers to our customers.
Vision uses real-time customer intelligence based on the history of the customer’s behaviour with O2 (tenure, tariff, usage, customer type, etc) along with the context of the conversation they are having with the advisor (the reason they called us) to calculate the most appropriate and relevant offers to make to the customer.
How does VISION work?
Upselling products and services to customers
• After the advisor enters the Customer ID and the call context, VISION runs propensity models and business rules against each of the 37 “product” offers, using multiple fields from the available 500+ fields in the Data warehouse, and taking into account any recent VISION decision history, scores and ranks each offer, and then displays the top 3 most appropriate and relevant offers/actions to the advisor
Data Warehouse
Business rules around usage, customer and product data
Propensity Models
Vision recommendation to
advisor
Call Context, Customer
Responses
Vision for up sell opportunities
Group acct noGroup nameGroup code
Postcode
Account typeBAM/BRM
Reward taken
Flex account
Company acct noCompany name
Company code
Account noAccount name
JBU8045021
JBU8048231
SME
CT3 3EQ
No
Boltons
Marley Group
JBU6821588Marley Waterproofing
MPN 07860349815
Tenure (months)
First prog. award
CONTRACT
LOYALTIES
Current tariff
Agreement no
ITS
252
No
Net 100 R/T
Marley Floors &Waterproofing Top offers for MPN are displayed.
Offers take into account the call context and the caller’s decisioning authority.
Group acct noGroup nameGroup code
Postcode
Account typeBAM/BRM
Reward taken
Flex account
Company acct noCompany name
Company code
Account noAccount name
JBU8045021
JBU8048231
SME
CT3 3EQ
No
Boltons
Marley Group
JBU6821588Marley Waterproofing
MPN 07860349815
Tenure (months)
First prog. award
CONTRACT
LOYALTIES
Current tariff
Agreement no
ITS
252
No
Net 100 R/T
Marley Floors &Waterproofing
If no offer is made, this is recorded by pressing ‘Not offered’ button.
Click on an offer to select it. The script helps the advice discuss the offer and provides a tailored justification
If offer is made, customer’s response is recorded by pressing appropriate ‘response’ button.
Vision for Retention
Objective in Retention
We wanted to re-align our investment to retain our best customers
With manual systems, it was very difficult to change advisor behaviour, and the focus had always been on a single target which was volume
Val
ue
of
re-s
ign
in
vest
men
t
Customer Value
Every customer receives a totally personalised experience
Standard Practice
Upgrade investment by matrix bands
• Spend range + tenure
Save combos via briefed rules
• Limited systems control or reporting
Refer to billing to see customer usage
Refer to devices website for handset info
Commission helps delivers on-target overall subsidy cost
With Vision Deal Calculator
Individual investment value for every customer based on their monthly spend
No save rules – just an investment target cost and maximum – much more flexibility for agents and cost management for O2
One screen view and recommended offers
Vision handset wizard helps match phones to need
Vision shows commission by transaction and performance to target
Meeting customer demand for advice and re-assurance can help us tailor packages that fulfil their needs, but also manage our costs
Advice
Managing costs
Managing Cost
Chosen save tools are added to the shopping basket
Remaining balance is re-calculated
Agent selects chosen save tools
Vision Results
Conversion rates
Conclusions
• We’re able to optimise inbound contacts by having relevant conversations with customer and offering the right products and services at that moment
• In retention we’re now able to control our retention spend by customer value
• The dynamic solution enables us to make quick changes to business requirements
• All of these strategies help to improve the customer experience by truly delivering on our O2 customer promise
Good knowledge of customers and great processes help us to invest in fantastic customer experiences…. resulting in incremental revenue
and an increase in customer satisfaction
27
Self Service Contact Center
Retail Branch
Centralized DecisioningAt the heart of improving “Customer Experience”