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Source: Bain Digital Insurer of the Future Benchmarking, 2014–2015
“Insurers expect an
increase in the use
of Big Data across
all functions”
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Source LIMRA: Big Data Analytics in Financial Services 2016
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“nearly surveyed
are exploring use of big
data analytics in customer
experience, underwriting,
product development, and
actuarial areas.”
50% of
companies
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Chris Campbell
CNO Financial
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Source LIMRA: Big Data Analytics in Financial Services 2016
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“The most active
area for big data
analytics is
marketing.”
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Source LIMRA: Big Data Analytics in Financial Services 2016
with the right mix of
technical and analytical
skills with good
communication and
business skills.”
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“Shortage of
analytical talent
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Carl Madaffari
Epsilon
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Source: Samantha Chow, Aite Group
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The with
which analytics is used
along the insurance value
chain
it is being used
intensity
does not mean
successfully or
effectively.
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Source: Forrester April 2016
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of marketers are
to help
achieve their goals.
63% prioritizing the
implementation of
technology
investments
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Dave Edington
Epsilon
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Source: Forrester April 2016
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of businesses
consider improving the
72%
customer experience
a top priority.
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Christopher Campbell, SVP Marketing & Communication, CNO Financial
Carl Madaffari, SVP Innovation and Marketing Technology, Epsilon
David Edington, SVP Industry Strategist, Epsilon
From historic to batch to streaming, where is your firm on the data continuum? There is an abundance
of real-time data that can be used to anticipate consumer needs and engage them with more
meaningful, relevant, and helpful experiences. What steps can you take to accelerate your firm’s data
and analytics maturity? This session will highlight how organizations can fully leverage the abundant
data assets available and showcase examples of what this can look like. 11
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Chris Campbell
CNO Financial
Carl Madaffari
Epsilon
Dave Edington
Epsilon
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Data, analytics & marketing maturity model
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relevancy >>>
so
ph
istica
tio
n >
>>
“your intent”
“their intent”
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Context
15
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Focused on middle-income
Americans, near
and in retirement
16
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The struggle to evolve customer experience
Common
barriers
• Data prevents single
view of the customer
• Lack of clarity on which
elements of CX are most
critical to improve
• Limited insights into
customers’ true needs –
including needs they are
not yet aware of
• Lack of customer
feedback – or a culture
that values it
• Organizational siloes;
different teams
responsible for
different channels
• CX is overwhelming
compared to other
initiatives
• Lack of team members with
the right skills, passion
• Budget limitations
• Legacy systems limit
ability to evolve the
experience (particularly
via digital channels)
• The marketers who “own”
the CX are not tech experts
• Concerns about privacy,
security
• Data not fully captured on
how customers are currently
engaging, and where
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Shifting CXO mindset
“We’re not going to war with cars, we’re going to
war with how we attract people to our brands.”
John Tague, CEO at Hertz, July 2015
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Data, analytics & marketing maturity model
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Default push
marketing: Program-centric
(brand, channel)
messaging
relevancy >>>
so
ph
istica
tio
n >
>>
“your intent”
“their intent”
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Push
Focus Product
Marketing Batch and blast marketing
Message Single message
Channel Single channel
Analytics Foundational
Technology No CRM, disconnected tools
Depth of customer connection
Level of CRM maturity
Marketing maturity building blocks
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Excellence in DM, DRTV, and some print –
In 2010 we dropped over
30 million pieces, as one of
the largest health insurance
mailers in the country.
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Pretty good models
22
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Declining response rates
New phone patterns
More digital interaction
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Excellence in DM, DRTV, and some print –
no segmentation, no mix, no digital
In 2010 we dropped over
30 million pieces, as one of
the largest health insurance
mailers in the country.
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Data, analytics & marketing maturity model
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relevancy >>>
so
ph
istica
tio
n >
>>
“your intent”
“their intent”
Default push
marketing: Program-centric
(brand, channel)
messaging
Segment-driven
targeting: Varying message by
targeting ‘like’ groups
of customers
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• Long-tailed contracts
• Strong incumbent relationship
• Price, hidden costs; large vetting and contingency process
• Organizational priorities.
- 13 “planes in the air” competing for capital and attention
• Business model
- Three separate business presidents with own, unique needs
• Strong desire to maintain / protect current activities
26
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To grow, we needed to become more
and
in reaching our customers.
targeted,
faster
27
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New Segmentation Model
July 2015
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Legacy Marketing
Technology Platforms –
over 40
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Marketing technology pillars
Recognition
& reach
Brand
experience
Analytics
& insight
Marketing
operations
ID & profile
Know your
customers through
their lifestyles,
attitudes and
behaviors, and
create the most
complete
individual profile
Find and
communicate with
those customers
where they are
engaging today
Engage them with
personalized
experiences
based on what
you know and
what you are
learning real-time
Track the impact
of those
experiences to
optimize your
message or to
adjust for changes
in market
conditions
Assemble a
team that can
align activities
against business
objectives and
execute
flawlessly
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Proposed Wellspring Solution
Omnichannel
campaign management
Distributed
Marketing
8
Lead / target
management
Data Management /
Business Rules Engine
2
Wellspring Solution Architecture
CNO Sources
and Systems
Channels Users
Direct mail
Web
Display
Social
Mobile
Call center
BI / analytics
1
Fusion
Identity Management
/ CDI / Online
Onboarding
3
Analytic Environment
6
Marketing DB
Environment
5
Platform Partners
For more than three and a half decades, Oracle has been the leader in database software. And as it has further developed technologies and acquired best-in-class companies over the years, that leadership has expanded to the entire technology stack, from servers and storage, to database and middleware, through applications and into the cloud.
IBM Netezza high-performance data warehouse appliances have revolutionized how organizations approach data warehousing and analytics. Engineered from the ground up for analysis of large data volumes, these appliances are purpose-built to make advanced analytics simpler, faster, and more accessible. They offer a complete solution that integrates database, advanced analytics, server, and storage together to deliver the performance, value, and simplicity that organizations need to handle their rapidly expanding data.
HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments, and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services, and IT infrastructure to solve customer problems.
Tibco's Service Oriented Architecture (SOA) solutions help organizations migrate to an infrastructure composed of services that can be assembled, orchestrated, and re-used. Enterprise-scale SOA comes together when you create services from new business logic and wrap existing legacy assets to expose them as services.
Business Integration – Builds a common framework for integrating incompatible and distributed systems to tie together applications and web services.
External Connectivity – Manages the secure execution of transactions outside of the firewall and over the internet.
Messaging – Manages the real-time flow of event-driven information across networks.
[x+1] has helped marketers connect with consumers in more meaningful, actionable ways, delivering content and offers where they’re most relevant. [x+1] can help brands, agencies, and media companies determine the most valuable customer attributes (those characteristics that indicate who is most likely to respond favorably) and then interact with those people when and where they are online. [x+1]’s Predictive Optimization Engine (POE™) is at the heart of a product set (Media+1, Site+1, and Landing Page+1), which enable automated, real-
BI / Analytic Tools 7
Application Software Partners
Business Objects, an SAP company, transforms the way the world works by connecting people, information and businesses. With open, heterogeneous applications in the areas of governance, risk and compliance; enterprise performance management; and business intelligence, Business Objects enables organizations of all sizes worldwide to close the gap between business strategy and execution. Together with a strong and diverse partner network, Business Objects allows customers to optimize business performance across all major industries including banking, retail, consumer-packaged goods and public sector. Business Objects is committed to helping customers turn raw data into actionable decisions, regardless of their underlying database, operating system, applications or IT system.
Cognos, an IBM company, is the world leader in business intelligence and performance management solutions. It provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.
Unica, an IBM company, has been a strategic partner of Epsilon since 2002. Unica’s award-winning marketing suite is a comprehensive marketing automation platform that assists marketers with complex campaign management, marketing resource management, and analysis functions. Epsilon routinely integrates Unica Enterprise applications as part of the overall direct marketing platforms we host and manage on behalf of our clients. Epsilon has implemented and hosted Unica Campaign for more clients than any other marketing service provider.
Adobe Neolane Campaign provides conversational marketing technology that empowers organizations to build and sustain one-to-one lifetime dialogues, dramatically increasing revenue and marketing efficiency. Born digital, with best-in-class email and inbound-outbound channel fusion capabilities architected into a single code-based platform, marketers achieve results in record time. Adobe Neolane Campaign is easy to use for both power and casual users, but powerful enough to drive the most sophisticated marketing strategies. Future-proof, Adobe Neolane Campaign has a track record of enabling its customers to adapt to new customer engagement challenges and exploit opportunities more quickly than their competition.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than
Conductor
Campaign
Management
Application
9
Digital Media
Targeting / Analytics
Application Software Partners
Business Objects, an SAP company, transforms the way the world works by connecting people, information and businesses. With open, heterogeneous applications in the areas of governance, risk and compliance; enterprise performance management; and business intelligence, Business Objects enables organizations of all sizes worldwide to close the gap between business strategy and execution. Together with a strong and diverse partner network, Business Objects allows customers to optimize business performance across all major industries including banking, retail, consumer-packaged goods and public sector. Business Objects is committed to helping customers turn raw data into actionable decisions, regardless of their underlying database, operating system, applications or IT system.
Cognos, an IBM company, is the world leader in business intelligence and performance management solutions. It provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.
Unica, an IBM company, has been a strategic partner of Epsilon since 2002. Unica’s award-winning marketing suite is a comprehensive marketing automation platform that assists marketers with complex campaign management, marketing resource management, and analysis functions. Epsilon routinely integrates Unica Enterprise applications as part of the overall direct marketing platforms we host and manage on behalf of our clients. Epsilon has implemented and hosted Unica Campaign for more clients than any other marketing service provider.
Adobe Neolane Campaign provides conversational marketing technology that empowers organizations to build and sustain one-to-one lifetime dialogues, dramatically increasing revenue and marketing efficiency. Born digital, with best-in-class email and inbound-outbound channel fusion capabilities architected into a single code-based platform, marketers achieve results in record time. Adobe Neolane Campaign is easy to use for both power and casual users, but powerful enough to drive the most sophisticated marketing strategies. Future-proof, Adobe Neolane Campaign has a track record of enabling its customers to adapt to new customer engagement challenges and exploit opportunities more quickly than their competition.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than
Campaigns
Branch
Manager
Marketers
Data
scientists Personalized & Anonymous Analytics
10 Dashboard
OSCR/PMA
Workbench
(Salesforce)
Target Data Store
CNO
Epsilon Replaces in Phase 2
Lead / Enhancement
Data
TargetSource
Plus
4
TV Leads Web
Leads
Vertical
Lists
Other 3rd
Party Data
C3 OSCR/PMA
Workbench
(Salesforce)
Print/Digital
Transfer SMARTS
Media DB
CNO
Direct integration
Real time
Batch
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Insurance
+19.0% Increase in quotes
+13.5% Increase in conversion
+13.4% Increase in PLE
+16.5% Increase in LPT
42% Policies/HH
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Banking
84.0% Lift in new accounts
19.8% Lift in customer accounts
16.0% Reduction in CPA
145% Lift in average
account balance
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Executive dreams for
• Digital
• Big Data
• Social
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Build a separate
digital team or
make everyone
digital?
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Migrate from channel-centric
to customer-centric
marketing strategy; manage
and optimize Transition the marketing
organization to be more
digitally focused
Govern the marketing organization
(broadly) and the orchestration of cross
channel communications (specifically)
Governance
Organizational
Change
Management
Integrated
Marketing
Strategy
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Segmented Push
Focus Product Customer
Marketing Batch and blast marketing Segmentation marketing
Message Single message Single message
Channel Single channel Multiple channels
Analytics Foundational Descriptive
Technology No CRM, disconnected tools Underutilized CRM
Depth of customer connection
Level of CRM maturity
Marketing maturity building blocks
39
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“Stop Segmenting; Start Individualizing”
Brendan Witcher
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Stop thinking CX
Start thinking iX
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Data, analytics & marketing maturity model
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relevancy >>>
so
ph
istica
tio
n >
>>
“your intent”
“their intent”
Default push
marketing: Program-centric
(brand, channel)
messaging
Segment-driven
targeting: Varying message by
targeting ‘like’ groups
of customers
Real-time
contextual: Varying message by
incorporating real-time
cues in context
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To leverage big data virtually
anytime, from anywhere in
real-time you need sophisticated
customer data integration
Customer data integration
Receive Validate Identify Retrieve
Referential data Customer data
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Real-Time Segmented
Push
Focus Product Customer Relationship
Marketing Batch and blast marketing Segmentation marketing Automated, real-time
marketing
Message Single message Single message Targeted messages
Channel Single channel Multiple channels Cross-channel
Analytics Foundational Descriptive Strategic
Technology No CRM, disconnected tools Underutilized CRM Loyalty and/or CRM platform
Depth of customer connection
Level of CRM maturity
Marketing maturity building blocks
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Data, analytics & marketing maturity model
relevancy >>>
so
ph
istica
tio
n >
>>
“your intent”
“their intent”
44
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Default push
marketing: Program-centric
(brand, channel)
messaging
Segment-driven
targeting: Varying message by
targeting ‘like’ groups
of customers
Real-time
contextual: Varying message by
incorporating real-time
cues in context
Anticipatory: Dynamically controlling
messaging by
anticipating needs
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Thru the arc of the day
6am 12pm 6pm
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360o real-time, actionable consumer profile - for every individual
Who they are • 120M households; 200M consumer profiles
• Demographic composition: age, gender, HHI, occupation,
• Life-stage (new mover, pre-mover, marriage, baby)
• Automotive (year/make/model, mileage, etc.)
• Neighborhood-level and property data
What they buy • 86 million purchases per day
• More than Amazon & eBay combined
• Over 4,000 retailer CRM integrations
• SKU level; on & offline
Cross-channel marketing activity • 42B annual email opens
• Catalog, direct mail, loyalty activity, credit card
applications and survey
• Social media: How I share, what I follow, what I like
What they watch • In-depth consumer understanding of contextual
video consumption
• 60MM new digital videos tracked monthly
Where they go • 4B verified lat:long data points a day
• 200 unique points of interest
• Accurate within 10 feet
What’s their worth • Value scores
• Wealth scores
• RFM data
• Economic Activity Index
How they spend • Channel preferences, seasonality, categories, etc.
• 200+ propensity models (i.e. Uninsured health households,
insurance switchers, Medicaid potential qualified HHs, etc.)
• Self-reported purchase behaviors and brand preferences
• Unique plan-to-buy intentions not found anywhere else
What they browse • 86B interactions a day (2nd only to Google)
• 400 days of browsing, engagement
and download activity
• 2nd largest display network (comScore)
• 170K SDK-integrated mobile apps
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Emotional Need States
Emotional Context
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Emotion Arising. Research shows that emotion is the component of customer
experience that has the largest impact on loyalty, but it is also the area where companies
are least adept and often seemingly ignore.
Over the past few years, neuroscience and behavioral science research has begun to
fuel new techniques for affecting human emotions.
In 2016, expect to see a major jump in the number of companies that discuss, measure,
and design for emotion.
Customer Experience Trends for 2016
(The Year of Emotion)
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Conscious Context:
Aligning with individual’s current emotional state
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Detecting emotions on:
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Anticipatory Real-Time
Segmented Push
Focus Product Customer Relationship Emotional Context
Marketing Batch and blast marketing Segmentation marketing Automated, real-time
marketing
1:1 dialogue, anticipatory
marketing
Message Single message Single message Targeted messages 1:1 / Dynamic messages
Channel Single channel Multiple channels Cross-channel Optimized omnichannel
Analytics Foundational Descriptive Strategic Optimized
Technology No CRM, disconnected tools Underutilized CRM Loyalty and/or CRM platform CRM with Loyalty platform
Depth of customer connection
Level of CRM maturity
Marketing maturity building blocks
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Measurement
Return on
Investment. MC/NAP
Driven by response
rates, appointment
rates, and sales
conversion
Customer lifetime
value matters: policy
size, cross-sales,
retention
Materiality. Lead
Volume; Insatiable
appetite for leads
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Basic
• Simple campaign reporting
• A/B Testing
• No control groups
• No targeting models
• Measure / optimize philosophy not embraced
Better
• More advanced campaign reporting (rules-based attribution) & dashboards
• Multivariate testing
• Campaign / channel control groups
• Response models
• Measure / optimize philosophy more widely embraced
Best
• Advanced campaign reporting (data-driven attribution)
• Fractional factorial test designs
• Universal control groups
• Uplift (incremental response) models
• Media mix models & scenario planning
• Measure / optimize philosophy instilled across marketing ops
Measurement & optimization
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Source: Forrester April 2016
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of businesses
consider improving the
72%
customer experience
a top priority.
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Top 5 Take-Aways
1. Be Curious and Open to Change
2. Don’t Let Past Success Be a Barrier to Future Growth
3. Center on your Customer
4. Invest Time in Organizational Alignment
5. Remember the Human Element
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Chris Campbell
CNO Financial
Carl Madaffari
Epsilon
Dave Edington
Epsilon 59
Thank You
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