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Presentation from IBM Smarter Business Summit: Halifax Sept 10th 2014

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  • 1. Smarter Decisions and Better Business Outcomeswith Predictive Customer IntelligenceJason SalaresSolutions Specialistjason.salares@ca.ibm.com613-356-57371 #SmarterBiz

2. Agenda Predictive analytics overview Predictive Customer Intelligence solution overview Demonstration2 #SmarterBiz 3. What is predictive analytics?Predictive analytics helps connect datato effective action by drawing reliableconclusions about current conditionsand future events.Gareth Herschel, research director, Gartner Group3 #SmarterBiz 4. Heads or Tails?4 #SmarterBiz 5. Would you bet on it?Toss # Outcome1 Heads2 Heads3 Heads4 Tails5 Heads6 Heads7 Heads8 Tails9 Heads10 Heads11 Heads12 ???5 #SmarterBiz 6. What if you had more data?Toss # Person Wind Surface Humidity # Rotations Outcome1 Person A Light Grass 40% 5 Heads2 Person B Heavy Asphalt 70% 6 Heads3 Person B Light Sand 55% 12 Heads4 Person A Light Asphalt 55% 15 Tails5 Person A Heavy Asphalt 76% 9 Heads6 Person B Heavy Sand 35% 8 Heads7 Person B Medium Grass 36% 8 Heads8 Person B Light Grass 44% 3 Tails9 Person A Heavy Sand 46% 7 Heads10 Person A Medium Grass 41% 6 Heads 99 Person B Medium Grass 36% 8 Heads100 Person A Medium Sand 76% 10 ?6 #SmarterBiz 7. Classification(or prediction)Algorithms UsageAutoclassifiers,decision trees,logistics, supportvector machinesand time series7 #SmarterBizPredict group membership(e.g., will this employeeleave?) or a number(e.g., how many widgetswill I sell?)SegmentationAutoclustersand K-MeansAnomaly detectionClassify data points into groupsthat are internally homogenousand externally heterogeneousIdentify cases that are unusualAssociationApriori, CARMAand SequenceFind events that occurtogether or in a sequence(e.g., a market basket)Full breadth of predictive techniques 8. Age of the Empowered Customer Stay Relevant8 #SmarterBiz 9. Empowered ConsumersDEMAND MORE FROM BRANDSAnticipate and service my purchasing needsMake it convenient and easy to interact with youBe there when I need you, in real-timeKnow me in context, remember all of our interactions9 #SmarterBiz 10. Key challenges uncoveredDifficult to deliver end-to-end customer analytics solutionable to consume, integrate, analyze, score and determinemost appropriate action with individual customerInability to gather and synthesize insights from analysisof social, text and transactional customer data to generatereal-time information to predict customer sentiment andneedsIncomplete view of customer information at the time ofinteraction, resulting in inappropriate or incomplete offers,communications or bothInconsistent service delivery and weak customerrelationships, resulting in high churnLack of channel integration and siloed lines of business,causing inconsistent or tactical customer interactionsFocus on uncoordinated marketing offers one-hit selling,as opposed to lifetime valueChallenged in using analytics to add short-term value orenhance long-term strategy10 #SmarterBiz 11. IBM Predictive CustomerIntelligenceCreating a memorable customer experienceone interaction at a time11 #SmarterBiz 12. IBM Predictive Customer Intelligence drives optimizedcustomer interaction at the point of contact based onpredicted outcomes and behavior to achieve desired12 #SmarterBizresultsLoyalty and profitabilityTarget cross-selling and up-selling of customers,based on loyalty and profitability, to grow customerrelationshipsChurn and lifetime valueRespond to customer needs and sentiment during theengagement to proactively decrease churn, continuous CLTVcalculationsMarket-basket analysisTailored offers are targeted to a customersbasket of existing or new goods andservicesat the point of purchase for up-selland cross-sellCustomer acquisitionIdentify and segment customers, targetthem for profitable marketing andacquisition efforts (wisdom of the crowd)Offer optimizationDevelop offers, tailored to businessobjectives and targeted tocustomers unique profileMarketingCustomer ServiceMarketingSales 13. DEMO placeholder to be run from laptop hardwired at front of room13 #SmarterBiz 14. Decision managementAn innovative business discipline that combines a variety of techniques to optimize actions and outcomesOptimized decisionsOptimization Predictiveanalytics14 #SmarterBizProvide frontline employees and systems withrecommended actionsEmpower real-time and adaptive decisions toaccommodate changing conditionsOptimize actions with resource constraints,aligning execution with strategyBusinessrules 15. IBM Predictive Customer Intelligence deliversIntelligence to marketing and operational systems15 #SmarterBizInteractiveVoice ResponseShort MessageServiceChatWebMobileAppsSocial MediaVoice EmailDataIBM PredictiveCustomer IntelligenceIBM EMM/Third-party MarketingMultichannelCustomer InteractionsHOW?Interaction Data Email and chattranscriptions Call center notes Web click-streams In-person dialoguesWHY?Attitudinal Data Opinions Preferences Needs and desiresWHO?Descriptive Data Attributes Characteristics Self-declared information Geographic demographicsWHAT?Behavioral Data Orders Transactions Payment history Usage historyAcquisition ModelsCampaign Response ModelsChurn ModelsCustomer Lifetime ValueLifetime Value Maximizer (GBS)Market Basket AnalysisPrice SensitivityProduct Affinity ModelsSegmentation ModelsSentiment ModelsUp-sell/Cross-sell ModelsIBM Predictive CustomerIntelligence Available BothInbound (Real Time) andOutbound (Batch)CampaignsOffersMessagingLead ManagementCross-channel CampaignManagementReal-time MarketingMarketing Event DetectionDigital Marketing 16. Industry Vignettes16 #SmarterBiz 17. Scenario 1: Optimizing OffersIBM Predictive CustomerIntelligence in action: Banking Pete called the bank contact center today to ask about loan processing times He checked mortgage rates on the bank website three times He tweeted for information on buying a second homeBank Action Sends an offer to Pete, via his channel of choice, for a mortgage with special termsScenario 2: Real-time Offers and Cross-sell Annes product portfolio shows she recently bought a new home Recent spending patterns in her demand account and her bank card show shes made a number oflarge household purchases recently Real-time transaction data shows Anne just purchased a kitchen applianceBank Action Proactively sends Anne an offer to her smartphone for an increase in her credit line and areduction in interest ratewhile she is still shopping. This heads off possible card offersfrom retailers. Alerts Anne to the banks secure digital vault service by simply taking pictures of importantdocuments with a smartphone17 #SmarterBiz 18. IBM Predictive Customer Intelligence in action: TelcoScenario 1: Churn Reduction Roger called the contact center today to talk about poor reception at his home Roger has had 10 dropped calls in last week in his home area thats 10x the average of 1 dropped call per week! Roger will be eligible for a new Smartphone under his contract in 6 monthsCommunications Service Provider (CSP) Action Customer service representative acknowledges the issue, apologizes to Roger for poor network serviceat his home, informs him of the estimated time for resolution of the issue CSR knows that the client is at risk of churning (due to PCI solution) and offers the client earlyupgrade to the latest Smartphone with a new signed contract (PCI solution recommendation). Roger accepts the offer, renews the contract for 2 years and is delighted at the exceptional serviceScenario 2: Improved Cross-sell / Up-sell Sara changes jobs and starts consuming media content over 3G in the public transport Sara tries 4G but decides not to subscribe to the Full High Speed Bandwidth for 4G Offer.Communications Service Provider (CSP) Action CSPs PCI solution suggests that Sara may like temporary 4G access. Based on Saras mobility profile(locations visited during the day, time spent at each location) & demographics, Sara is similar to Jane whoutilizes high speed access during her commute to work on public transport. CSP offers Sara location based high speed access subscription to allow her to stream videos on theway and back from her using public transport (selected lines on partnered public transport network) The solution is custom-fit for Sara Sara accepts the offer, CSP gets the additional revenue18 #SmarterBiz 19. IBM Predictive Customer Intelligence in action: RetailScenario 1: In-store real-time contextual offer Lily browsed VT Livings smartphone app today to check out organic cotton sheets & cutting boards.Puts sheets in her checkout cart and abandons it. Social activity in the past 3 months shows her tweeting pics of first ever flat purchase in Brooklyn Lily as an opt-in customer walks into the VT Living store and is recognized via her smartphone in real-timeRetailer Action Sends a welcome message to Lily via SMS, directing her where to find the cotton sheets. A today onlyspecial offer of 10% off bamboo cutting boards when found spending more than 10 minutes in the area. Lily makes her purchases, delighted VT Living is helping her save time and money.Scenario 2: Segment migration campaign VT Livings customer segmentation report shows Lily is in the medium value segment and scored as prime to move to high valuesegment. Recent new behavior attributes about Lily from social data shows she is passionate for earth-friendly causes; web activity showsinterest in eco-friendly products. Sales transaction data shows recent household purchases. Customers identified with the same passion for eco-friendly products have been scored &analyzed to show what eco-friendly productshave been purchasedRetailer Action Proactively send Lily an email offer thanking her for her recent store purchases and a special 2 dayexpedited free shipping offer for eco-friendly soda maker products. Lily tweets about it favorite social media channels she is interested in.19 #SmarterBiz 20. IBM Predictive Customer Intellig

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