May 17th 2016

Dr. Michael ZellerCEO, Zementis

Go From Traditional Campaigns to More Relevant Customer Interactions Put Your Data to Work to Fuel the Customer Experience

Steven NoelsCTO, NGDATA

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Campaign-Based vs. Interactive Customer Marketing

• Only static information used to segment, such as Location and Age

• No other understanding of the customer to ensure relevancy of content and delivery

• Shooting in the dark with fixed-schedule outbound communications

Campaign-Based Marketing:

• Understand customer down to the individual-level from all data points - from behavioral to contextual information, and everything in between

• Know how messages should hit the right person, at the right time, and through the right channel – a completely customer-centric approach

• Can have both inbound and outbound approaches due to knowing when customer will react and engage

Interactive Customer Marketing:

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Interactive Marketing = Better Customer Experiences

OFFERTHE RIGHT

PERSONTHE RIGHT

TIMETHE RIGHT

CHANNELTHE RIGHT

• Customer-centric approach - putting the customer front and center

• One-to-one, individual-level marketing instead of low-precision mass campaigning

• Transition from scheduled, outbound campaign marketing to more relevant conversational marketing

• Contextually-relevant and -aware information and offers

• Better alignment with customer intents, preferences and life events

Use customer data to put actions to your insights.

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• Make use of all your data for relevancy at every interaction

• Importance of real-time to improve communications over time

• Consistent and relevant communication regardless of the channel

Put Your Customers at the Center of Your Strategy

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• Exceptional customer experiences

• Relevant offers and consistent messaging

• High quality customer service

• Personalized omni-channel experiences

• Anticipate and exceed needs − Google, Facebook, etc.

Technology Companies Give Customers What They Expect…

Personal

Fast

Intuitive

Integrated

Everywhere

Relevant

Wow them, or become irrelevant!

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Better for Both the Business and the Customer

Efficiency and collaboration

Longer and more valuable relationships

Greater revenues

Relevancy and context

Value

Customer impact

Happy to be doing business with such a smart vendor

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Transition from Campaigning - Start with DNA

The foundation of customer centricity starts with the true understanding of your customers at the individual-level.

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DNA is Made Up of Multiple Types of Customer Metrics

CONTRIBUTED OBSERVED

CALCULATED PREDICTED

DWH

CRMPAYMENTS

SOCIAL

ONLINE

MOBILE

CUSTOM MODELS

MACHINELEARNING

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Building Atomic Level Understanding Through DNAThe impact of using behavioral data

Traditional models based on aggregated data over time, and customers are SLOWLY evolving and don’t react on behavior

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Modeling DNA to Predict Customer Behavior

• Real-time - seamlessly and efficiently modeling customer behavior for relevant and timely customer interactions

• Predictive Models - moving rapidly from development to deployment

• Routine - easily incorporated predictive analytics into routine operations

• Agile Deployment and operational enablement of predictive solutions

FOUNDING PRINCIPLES

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Predictive Analytics Creates Value from Data

Descriptive Analytics answers “What happened?”“Passive” Business Intelligence: Reports, Dashboards, etc.

Predictive Analytics answers “What will happen next?”“Active” Decision Support: Alerts, Automated Decisions

BATCHPROCESSING

REAL-TIMEPROCESSING

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The Path to Business Value

BUSINESS INSIGHTS

DECISIONS& ACTIONS

• Accelerated time-to-market

• More precise targeting

• Real-time responsiveness

• Enhanced operational agility

• Competitive advantage

• Higher revenue growth rates

• Greater profitability

• More relevant

• More accurate

• More comprehensive

• More nuanced

• Faster

• Lower risk

• Greater positive impact

CUSTOMERDATA

Applications

Databases

Social Media

Log Files

RSS Feeds

Other Sources

PREDICTIVEANALYTICS

Predictive Models

Machine LearningTechniques

Data Mining Tools

BUSINESSVALUE

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The PMML industry standard creates a common process to:• Accelerate the deployment

• Ensure scalable, enterprise-grade execution

• Ensure transparency among all stakeholders

• Foster best practices

• Transform predictive models into dynamic assets

Open Standards to Operationalize Predictive Models

Divisions Service Providers

Applications External Vendors

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Data is a Perishable Asset

BUSINESSVALUE

High valueresponse

Low valueresponse

Business event

Time to Act

• Value of response declines rapidly

• Fast action is paramount

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More Data is Better, But Still Perishable

BUSINESSVALUE

High valueresponse

Low valueresponse

More data

Business event

Time to Act

• More data means more value

• Fast action is still paramount, but even harder to achieve with bigger data volumes

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LilyDataFrames

BackOffice Data

predictivemodel

PMML scoring engine

REAL-TIME SCORES

Putting Your Models Into Action

LilyEnterprise

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Applying Insights to Actions

Continuous calculation of actions and reactions

Real-time is important for contextual awareness

Trend more important than value

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INSIGHTS IMPACT

Interactive Customer Marketing ROI

VS

“People belonging to Segment A are likely to buy product X”

“Lily selects top 100 people that are likely to buy product X NOW”

5% 65%

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Multiple Use Cases

CUSTOMER LIFETIME ATTRITIONACTIVATION

MARGIN

PERSONAL ADVISE

CUSTOMER SUPPORT

UP SELLING PERSONAL ADS PARTNER

PROGRAMSRISK

PROGRAMS

CHURNREDUCTION

360 view for advisorContent

recommendation

Micro campaignsAnonymous

Call predictionsScript

recommendations

Online offers121 Campaign

Personalized adsPersonalized

Social

Support partners apps

Merchant offers

Attrition programsIdentify Fraud

ACQUISITION

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Support for Both Outbound and Inbound Scenarios

InboundOutbound

more relevant and precise target lists

Micro-Targeting

Individualindividual-level data-driven approach, alerts, using channel preferences, past purchase history

personalizationOnline

ServiceDesk

anticipation, guided conversation

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Customer Reference: Smarter Messaging, More ConnectingOPPORTUNITY

• Belgium’s largest cable provider Telenet, part of the Liberty Global Group, needed to lower broad marketing program costs, while increasing campaigns results

SOLUTION

• Created Customer DNA - a sophisticated and nuanced understanding of customers from millions of data points around both inbound and outbound interactions

• Determined targeted, customized campaigns to transition Telenet from an acquisition-driven marketing organization to customer focused organization

RESULTS

• Telenet has increased segmented campaigns from 100 campaigns per year to now more than 750 per year, delivering content more appropriate to each of their 4.8 million customers

• Increased return rate on sales campaigns by 300-400%

• A pricing and go-to-market strategy based on better customer understanding dramatically increased Telenet’s mobile customer base within just a few months of its availability

INCREASEDRETURN RATEON SALES CAMPAIGNS

300-400%

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Fundamental Break from Campaigns to Customer-CentricityCampaign-Based

ApproachesOperationalized Analytics forCustomer-Focused Programs

Real-TimeContinuousFixed scheduled, not timely

Lacking context

No or late reaction to customer behavior

Unable to predict customer preferences

Costly with limited return

Atomic-Level Complete View

Automated Learning

Omni-Channel Impact

One Solution,Multi-Use

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Thank you! Any questions?

stevenn@NGDATA.commichael.zeller@zementis.com

Zementis, Inc. is a leading software company focused on the operational deployment of predictive analytics and data mining solutions. Its ADAPA® and Universal PMML Plug-in scoring engines are designed from the ground up to benefit from open standards and to significantly shorten the time-to-market for predictive analytics in any industry.

NGDATA helps companies in data-driven industries operationalize their data analytics through our real-time, analytics-based customer experience management solution, Lily Enterprise™. It finds insights and executes on them, bridging the gap between the worlds of data and business, enabling the delivery of timely, relevant and contextually-aware interactions that customers embrace.

www.zementis.com www.NGDATA.com