enhancing microsoft crm with real-time analytical capabilities

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© Copyright GSTAT LTD. 2003

Enhancing Microsoft CRM with Real-Time Analytical Capabilities

“GSTAT – Advanced Data Mining Solutions ”

in corporation with

“We – Consulting Group” January 2007

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Content

Introduction

Real Time Analytics incorporated with MCRM – Demonstration of Business Scenario

Next Best Offer

Churn Management

Credit Risk

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Integrating G-STAT Analytical Platform With Microsoft CRM

The following presentation presents the potential integration between Microsoft CRM solution with G-STAT Analytical Platform (AP).

G-STAT AP is a package of advanced real-time data mining solutions, based on SQL Server 2005 and .net technology. G-STAT AP provides a customized set of analytical solutions for each of the following 4 industries: Finance, Telecom, Retail and Healthcare and acts as a back-end recommendation engine.

MCRM is used as front-end application which allows the management of customers interactions. The described integration enables the MCRM users to receive analytical based recommendations to support existing or potential interactions and allow a more personalized interaction.

Such integration will deliver the most advanced analytical approach available in the market today, seamlessly as part of the Microsoft CRM platform, surpassing, in terms of capabilities, the leading CRM players.

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Content

Introduction

Real Time Analytics incorporated with MCRM – Demonstration of Business Scenario (Banking Demo)

Next Best Offer

Customer Retention

Credit Risk

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A customer calls to the Call-Center or enters the branch.

Via the MCRM application, The banker can view 3 additional “Analytical Folders” supporting the customer interaction by: (1) identifying suitable cross sell/up sell opportunities, (2) suggesting effective retention activities, (3) performing credit risk simulations

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Next Best Offer

Via the “Inbound Marketing” analytical folder, the banker can view the customer’s Next Best Offers (NBO) : The financial products/services that the customer is most likely to buy at this moment, and have been authorized to sell to this customer.

The recommendations are based on GSTAT Analytical Recommendation Engine, an advanced analytical solution which finds customers’ NBO, based on advanced data mining models which analyze customer financial and behavior profile.

The NBO recommendations can be updated in real-time according to interaction with the banker, if new, meaningful data has been documented in the MCRM.

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Next Best Offer

After offering the customer his Next Best Offer, MCRM will open an opportunity with the proper status.

From this point on, the MCRM will follow and manage the opportunity until it be completed.

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On top of recommending NBO within inbound marketing activities, GSTAT Analytical Recommendation Engine automatically produce every night potential lists, based on data mining models, for every relevant product and service sold by the bank

Within these potential lists, all the company’s customers are scored from 1 to 100 by their likelihood to accept targeted marketing offer to purchase every product or service

Companies use these scores as inputs to their campaign management / reporting systems as a base for more targeted and profitable campaigns

Experience have shown that response rates raised from 3% to over 30% (!) thanks to using G-STAT solution recommendations while performing 1-To-1 Marketing

G-STAT Analytical Recommendation Engine – Smarter and Profitable Marketing

Next Best Offer

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Customer Retention

Via the “Customer Retention” analytical folder, the banker can view the customer’s probability to close his account or shift financial activities to other banks.

The Churn risks indicators and recommended retention programs are based on GSTAT Churn Prediction Solution (CPS), an advanced analytical solution which finds customers’ churn propensity and recommends retention program based on advanced data mining models which analyze customer financial profile.

The indicators and recommendations can be updated in real-time according to new and meaningful information received within an interaction with the customer.

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Customer Retention

Indicators regarding customer’s past and future churn risk - pre-calculated (monthly/weekly) and real-time calculated (based on new information gathered during interaction with the customer)

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Customer Retention

Information regarding customer’s most significant churn reasons

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Customer Retention

Information regarding customer’s recommended personalized retention programs

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Credit Risk

Via the “Credit Risk” analytical folder, the banker can view the customer’s Credit Risk indicators and run credit risk simulations by changing his financial attributes.

The Credit Scoring is based on GSTAT Credit Risk Solution (CRS), an advanced analytical solution which calculates customers’ Credit Scoring, based on advanced data mining models which analyze customer financial, demographic and behavior profile.

Along side the credit risk, each customer’s potential to buy more credit is also presented – This enables the banker to have a clear picture of the opportunity and risk in proposing additional credit products.

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Credit Risk

Indicators regarding customer’s past and future credit risk are presented along side the customer’s probability to purchase more credit.

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Credit Risk Graph describing customer’s risk curve and credit authorization/pricing limits :Green – Safe credit risk.Yellow – Medium credit risk – higher rate needed or branch manager authorization needed.Red – High credit risk – higher rate needed for risk compensation or division manager authorization needed.

15,000 $

80,000 $

110,000 $

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Solution Overview – How do we compliment the Microsoft CRM platform

Business Solution

Microsoft CRM G-STAT Analytical Platform

Next Best Offer(Inbound)

Show for each customer his Next best offers. The bankers updates MCRM according to customer needs. Show for each customer his real- time updated NBO. Opens and track each opportunity thru it’s completion.

Runs every night advanced data mining models and prepare NBO for each customer. Updates NBO recommendations in real- time according to interaction with the customer. Real-time recommendations are updated using web service vis a vis MCRM and GSTAT AP

Next Best Offer(Outbound)

Deploy multi channel targeted campaigns for specific products/services

Runs every night advanced data mining models and prepare potential lists for each product/service.

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Business Solution

Microsoft CRM G-STAT Analytical Platform

Customer Retention

Presents at each interaction the customer’s churn propensity, main churn reasons and recommended retention program. The banker is enabled to propose appropriate retention offers. The banker is able to document and track the retention activity until it’s completion.

Runs every night advanced data mining models and estimates the churn probability and recommended retention program for each customer Updates churn info and recommendations in real-time according to interaction with the customer Prepares weekly potential lists of high churn risk customers for pro-active retention campaigns

Credit Scoring Presents at each relevant interaction the customer Credit risk and credit potential. Enables the banker to simulate different credit offerings vis a vis customer credit risk. The banker is able to document and track the credit activity until it’s completion.

Runs every night advanced data mining models and estimates the credit scoring risk curve for each customer. Updates credit risk info in real-time according to interaction with the customer.

Solution Overview – How do we compliment the Microsoft CRM platform

enhancing microsoft crm with real-time analytical capabilities

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