Harnessing the Power of Analytics

Data Integration = Program Actions and Results

The Power of Linking and Sharing InformationNewborn Screening

The Power of Linking and Sharing InformationChild Immunizations

INTEGRATED SERVICE DELIVERY

Child Care

Child Custody

Job EmploymentFood Assistance

Housing

Education

Transportation

Services have been fragmented for people in need . The River of opportunity is changing the way services are delivered.

Solution • Convert Caseworkers to Success

Coaches

• Modernize IT systems

Outcomes• Increase number of people meeting

success plan objectives

• Increased employment due to coordination of work training

Solution Components of Integrated Service Delivery

• Converting Casework

to Success CoachingClient Folio

Family Goals

QualityManagement

Family Needs Assessment

Common IntakePortal

Integrated Service DeliverySolution

Client Folio

Family Goals

QualityManagement

Family Needs Assessment

Common IntakePortal

Integrated Service DeliverySolution

• Access to a summary of client information including services received

• Initial assessment of each individual’s need

• Available to client or Success Coach

• Application questions driven by initial assessment

• Interfaces to current systems for eligibility or referrals

• Helps identify goals based on initial assessment

• Visible to both client and Success Coach for progress tracking

• Identify areas of improvement and measure self sufficiency

PREVENTIVE SERVICES - Current model

Focus is Reactive

Foster care home

Services focus on treatment AFTER families are in crisis.

Focus on reactive intervention is more costly and less effective than prevention.

PREVENTIVE SERVICES

IMPROVED MODEL

Solution

• Comprehensive managed care• Shift incentive from number of days in care to meeting the needs of the family• Focus on Prevention, Early intervention and Diversion

Outcome• Increase Graduation rates for children

• Increase family placement to 90% (currently 77%)

TRACKING SUCCESS

Segmenting the Population

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Current Challenges and Drivers for ChangeCurrently, services available to citizens in needs are fragmented across areas of delivery and the program is lack of customer centricity for enhanced customer experience and outcome.

Success Tracking

• Ability to track success and program outcomes are limited

• Need to promote better outcomes

Changing Customer Needs

Fragmented Services and Systems

Service Access

• Large number of services across multiple channels• Systems primarily designed with one area or program in mind• No one point of access for client information

• Multiple doors to access services and programs• Program centric versus people centric focus• Lack of consolidated view for residents or agencies to view programs or services

Increasing Service Complexity

• Service population is more diverse than ever• Alignment between agency services and customer needs or expectations• Waivers need to be considered

• Customer engagement is occurring in varying physical and digital spaces• Agencies to do more with less given budget constraints• Need for adhering to overlapping program policies

What if you knew more about your client and could personalize services and optimize service mix to improve

customer experience and satisfaction?

What if you could allocate mission critical dollars to those most in need and maximize program

impact?

What if you could generate customer insights and enable fact

based decision making and operation?

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With changing customer needs, tightening budgets, and increasing complexity of services, the government is in need of greater customer insights to align services with citizen needs.

What would help to achieve objectives?

A customer segmentation solution would help accelerates customer insights from data and enable targeted service offerings for agencies’ customer centric, mission focused programs

Customer segmentation is a business strategy that involves dividing a broad target universe into distinct subsets based on a select set of population characteristics through domain knowledge and statistical methods

SegmentationAnalysis

Customers Population

Customer/Household Insights

Tailored Products and Services

Outputs

What is Customer Segmentation?

Targeting Strategies

Customer segmentation translates raw customer data into meaningful service strategies, reducing the cost to serve certain segments while increasing efficiency and effectiveness of overall program

CRYSTALIZE How can customer

adaptation to services be used to improve new or existing programs?

How to measure program performance

OPERATIONALIZE How should facilities and workforce be placed

to best serve identified customers? What types of engagement strategies best

align with the customers segments to help define messaging and outreach techniques?

How do customer behaviors and preferences influence delivery models for services?

OPTIMIZE How should I

prioritize program implementation over given areas or segments to maximize value to customers?

RATIONALIZE• What are the needs of customers and how can these be used to define

mission objectives?

• How do customer volume or characteristics influence demand for government services and how do these vary over geographic space?

• What are the most appropriate market areas for government services?

• How do differences in customer behavior and preferences influence an agencies risk of mission fulfillment?

How Customer Segmentation Can Help?Customer segmentation helps uncover hidden data insights, understand characteristics of customers, and how they interact and influence programs. It enables fact-based decision making from strategic planning to operations improvement

Customer Segmentation Approach

Effective customer segmentation starts with the end in mind and requires optimal application of science and art. A good segmentation solution will take a business-led approach and have the benefits of combining available customer information with business value and follow the following guiding principle: • Science + Art: Business led and customer data driven segmentation solution • Holistic framework: End to end solution from data integration to front end user visualization and roll out.• Deployable and actionable: The final solution has to be deployable to front end application/tools and the insights are

actionable

Guiding Principle

Segmentation Process

Develop Segmentation Create Personas Visualize and

Roll outGather and Prepare

Customer DataBusiness Discovery and

Assessment

2 3 4 51

• Conduct business discovery and gather the necessary information

• Confirm business objectives and communicate a shared view of and objective of the project

Identify business objectives and hypothesize segmentation criteria Collect and assess

existing information (internal customer data, external data, etc.) and derive additional data based on hypotheses

Customer data is analyzed using statistical tools with robust algorithms using an iterative processes Key stakeholders

participate in reviewing work products and deriving segments

Detailed segment profiles are produced and supplemented with segment personas or service affinity Develop a more broad

and understandable view of the customer and targeting strategy

Deploy segmentation system and develop user interface to support business operation Outlines how the

business can address each segment from each outreach and service dimension and delivery channels

External:Third Party Data (ACS, ESRI, EASI, Social Media etc.)

Internal:HHS Customer Data

Extract data for population of interests

Conduct iterative segmentation analysis and develop segment profile and strategy

Inform client needs assessment and enable smart workflow routing

Tailored service mix, enhanced needs assessment, targeted communications

Objective: Promote self-sufficient among recipients through customer segmentation

Customer Segmentation Examples for HHS

Population Segments Needs Assessment Service Mix Optimization

Segmentation Drivers:Age, Gender, Education, Employment Status, Income, Activities: Service History, Client Folio

Segmentation Descriptors:Existing Benefits History;Existing Outcome;Geospatial attributesHousehold demographic

Sample Needs:• Lack of gainful

employment;• Underemployed -

have held a full-time job for 6+ months but do not earn enough to be self-sufficient

• Better Job opportunities

Intelligent Probing Questions

• Targeted E&T services

• Job skills training• Childcare• Community College • Employment

resources• Skilled Trades

Training

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Segmentation is an artful analytic technique that involves a collaborative team working on a suitable analytic platform to drive actionable customer insights and inform business strategy and decision making

A‏N

ALYSIS

& G

UID

EDC

LIENT

INTER

AC

TION

Stakeholders help define‏solution objectives and

determine appropriate level of integration

Analytics platform provides‏base for segmentation, predictive analytics and

visualization for customer insight

Data scientists iteratively‏refine segmentation

solution based on client feedbacks and client and

third party data

Domain SMEs work to integrate custom solutions within client environment

using client data.

What a Customer Segmentation Effort Looks like

Discover Build Operate

Implementation Considerations and Lessons Learned

Feasible: is it possible to implement and productionize?

Actionable: Can you influence behavior

Desirable: is it something customers want and need?

Viable: is it possible and sustainable in the organizational environment?

Best Practices

It’s critical to integrate segmentation insights and strategies into business operations to maximize mission impact and enhance program outcomes

Business Integration

• Develop segmentation without considering deployment environment

• Unable to create and execute strategies against segments

• Developing too many segments that are difficult to operationalize

Lessons Learned:

Advancements in Process Inefficiency/Inconsistency Identification Aid Operational Reviews

Anticipating Behaviors to Drive Outcomes

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Predictive Modeling is an approach to assist agencies identify and reduce improper payments composed of the following components:

Predictive Modeling Overview

Predictive AnalyticsBased on patterns of overpayments and fraud in historical data, the tool predicts where overpayments will happen before they occur.

Treatment StreamsMethods for reducing overpayments tailored to state-specific sources of overpayments.

Technology ImplementationThe tool is able to interface with modern and legacy systems either from 3rd

party cloud providers or via on-premises installation at the state.

Convergence of Nudges and Predictive Modeling “WE ARE LIVING IN EXCITING TIMES. The convergence of big

data, advanced analytics, and a deepening understanding of habits and how to ALTER human behavior through data-enhanced “nudges” is rapidly changing the world we live in.”1. Prescription drug initiatives2. Evidenced based medicine3. Data-driven coupons fighting diabetes4. Telematics5. Hospital check lists6. Assistance Programs7. Provider Enrollment8. Child support enforcement

Source: Contingencies Magazine, May/April 2015

“Habits aren’t destiny… habits can be ignored, changed or replaced.”

- The Power of Habit, Duhigg“The bottom line, from our point of view, is that people are, shall we say, nudgeable.”

- Nudge, Sunstein and Thaler

Use of messages/certification on high scoring unemployment claims, where the top 30% of claims are responsible for approximately 60% of separation overpayments at the moment the claim is submitted

Positively Impacting Separation Overpayments

Random AssignmentTo Control Group

Receiving Messages

First Time Claimant

VisitsWebsite

Claimant Checks Eligible Category

Layoff Quit Discharged Still Working LOA Suspension Etc.

A

B

A

B

In early results, Message B outperforms Control Group A. Claimants more accurately report separation reasons.

25% more likely to have issues holding payments.

10-15% less likely to be paid yet Expected savings: ~10% of

benefits paid annually

Normal separation reporting screen

“Please be advised that your employer will receive notification of your answers to these questions. Click here to see a copy of the letter your employer will receive.”

Early results from suggest savings of 10-20% per year without taking benefits from any eligible claimants or increasing staff workload.

Predictive: Leverage patterns in historical data to predict where future improper payments will happen.

Real-time: Deliver actions while claimant is interacting with your system.

Behavioral Analytics: “Nudge” into better behavior.

Experiment: Randomized Control Trials for clear measurement of impact and benefit.

Benefits identified in production

Impact: More accurate information avoids overpayments and reduces duration.

Earnings fraud reduced 10%: increase in self-reported earnings by 25%

Separation reasons reported more accurately: savings estimated at 10% of benefits

Messages regarding Work Search encourage 3-5% reduced duration.

BPC working cross matches 15-20% more efficiently: identifying and recovering more overpayments.

Stop Chasing. Start Preventing.