DDMA / Chordiant: Online Marketing

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Event: DDMA iLounge Thema: DM 2.0 Spreker: Hugo Koopmans – Chordiant Datum: 26 september 2007, De Balie Amsterdam www.ddma.nl

description

Hugo Koopmans van Chordiant laat op overtuigende wijze zien hoe hij Tweede Fase Marketing succesvol toepast in zijn bedrijfsvoering.

Transcript of DDMA / Chordiant: Online Marketing

Page 1: 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

Page 2: DDMA / Chordiant: Online Marketing

Inbound marketing :van cost naar profit centre

Hoe het ‘Next Best Action’

paradigma voor meer

omzet,service en loyaliteit

zorgt.

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Contents

1. O2 CRM Transformation Programme

2. An Example campaign

3. The Next Best Action paradigm

4. Vision

5. Conclusion

6. Chordiant Centralized Decisioning

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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.

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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

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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

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An example campaign :

Evaluation of Summer Roaming PromotionWe think it is a great campaign!

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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.

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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

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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)

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The Next Best Action paradigm

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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

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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?

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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.

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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

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Vision for up sell opportunities

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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.

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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.

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Vision for Retention

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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

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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

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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

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Chosen save tools are added to the shopping basket

Remaining balance is re-calculated

Agent selects chosen save tools

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Vision Results

Conversion rates

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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

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Self Service Contact Center

Retail Branch

Centralized DecisioningAt the heart of improving “Customer Experience”

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Hugo Koopmans

Principal Consultant Decisioning

[email protected]