What’s New in Uplift Optimizer 5.3 Patrick Surry Product Manager USA: 1 866 793 4279 Austria 0800 28 1673 Belgium: 0800 505 60 Canada: 1 866 270 8076 India

What’s New in Uplift Optimizer 5.3

Patrick SurryProduct Manager

USA: 1 866 793 4279Austria 0800 28 1673Belgium: 0800 505 60Canada: 1 866 270 8076India 000800 100 6558Republic of Ireland: 1800 944 607Netherlands 0800 0233 593Norway: 800 164 90Spain 900 801 508Sweden: 0200 125 679UK: 0808 109 1441International: +44 20 8609 1476Access code 131716 #

Starting in 15 minutesStarting in 10 minutesStarting in 5 minutesStarting in 2 minutesStarting Now

© 2008 Portrait Software Strictly Confidential page 2

How to ask a Question





• Presenter: Patrick Surry

• Audience: Current users of Uplift Optimizer

• Goal: Highlight the key new features and functionality provided in version 5.3

• Format: A live demo with some slides


Interaction Optimizer™

Campaign Manager™

Portrait Solutions

Sales

Service

Customer

AnalyticInsightAnalytic Insight

Analytic Insight

Your CRM

• Siebel• Microsoft• Salesforce.co

m

Your CRM

• Siebel• Microsoft• Salesforce.co

m

MarketingMarketing ChannelsMarketing Channels

Campaign ManagementCampaign

ManagementCampaign

Management

InteractionManagement

UpliftUplift

Interaction ManagementInteraction

Management


Expert Opinion on Portrait’s Uplift Solution

“Telenor will realize an 11-fold increase in uplift campaign ROI when compared with existing programs”

– Gartner, “Magic Quadrant for Customer Data-Mining Applications 2008” , Gareth Herschel

“Innovative”

“Marketers can now add uplift modeling to the arsenal of tools”

- Forrester Research “Optimizing Customer Retention Programs”, Suresh Vittal

- Forrester Research “Optimizing Customer Retention Programs”, Suresh Vittal

http://www.gartner.com/silentlocalechooser.jsp?locale=wcw


Uplift Modeling: Core Idea

• Traditional targeting is based on modeling outcomes, not uplift in outcomes

• Uplift Optimizer directly models the difference in behavior between a treated group and a control group to find the people most affected by an intervention

• This allows us to:– target people who are more likely to buy given an incentive, rather than

simply those likely to buy– target people who can be saved from attrition by an intervention, rather

than simply those likely to attrite– target people whose risk of default (or expected loss) can be reduced by

intervention, rather than simply those with high risk


Uplift Targeting vs. Attrition Probability

0% 20% 40% 60% 80% 100%Proportion targeted

Att

riti

on

Ra

te

0%

4%

6%

8%

10%

2%

-6%

-2%

0%

2%

4%

-4%

Targeted

Control

Reduction in Attrition (Lift)

(Most likely to Attrite first)(Most likely to be saved first)

Up

lift

rat

e(c

han

ge

in A

ttrit

ion

prob

abi

lity)


Stay Leave

Leave

Stay

Fundamental Segmentation for Retention

PERSUADABLES

SLEEPING DOGS

SURE THINGS

LOST CAUSES

When targeted

When not targeted


MORE

SAVABLE

Attrition probability if not targeted

0

SLEEPING DOGS LOST CAUSES

SURE THINGS PERSUADABLES

Att

riti

on

pro

bab

ility

if t

arg

eted

Predicting Savability


0%

20%

40%

60%

80%

100%

120%

0% 20% 40% 60% 80% 100%

Proportion targeted

Pro

po

rtio

n o

f in

cre

men

tal

eff

ect

Sure ThingsAct whether youtreat or not

© copyright Portrait Software 2007

1

2A

2B

3

PersuadablesOnly act if treated

Sleeping DogsAct only if not treated

2

No impactPositiveimpact

Negativeimpact

1 2 3

Incremental Impact for Retention

Lost CausesWill not act, even if treated

Put this money back into your

marketing budget


Uplift Optimizer 5.3 Themes

• Increased Efficiency– Removed multiply-up stage– Performance enhancements for wide foci– Support implied case-weighting

• Improved Usability– Better diagnostic reports (navigation, heat-maps, summaries)– Integrated with Analytics 5.3, updated documentation– Added progress reporting, better system-wide defaults

• SAS Integration– Drive uplift modeling & reporting from SAS scripts– Deliver uplift models as SAS code, reports as SAS data– Read and write SAS datasets as always

General Availability: 3 November 2008(Rollout to all customers coordinated by Portrait Support)


Demonstration


Uplift Optimizer Futures

• Themes:– Business-user focus: vs. SAS user

(Excel reporting, financial forecasting, what-if analysis)– Enhanced automation: fire & forget

(uplift assessment, better parameter search, recommend best model)– Intelligent targeting for outbound• Self-arbitrating response vs. uplift analysis• Web-based• Simple wizard-style interface• Integrated with PCM

• Estimated availability: early 2009


Customer Case Studies

Deliver next generation targeting for customer retention (churn) campaigns Removing negative effects thus decreasing both churn and campaign costs

Campaign ROI increased over 11 times previous campaigns Churn rate decreases by an additional 36% over traditional approach

• Traditional targeting reduced churn by 5% (from 23% to 18%)• But significant negative effects observed• Uplift model reduced these significantly

• Saving 40% of treatment costs• Further reducing churn to 6.8%

Business Goals

ROI

Without Uplift

With Uplift

Treated Volume

100%

Treated volume reduced by 40%

60%

Reduction in Overall Churn

Without Uplift

With Uplift

5% 6.8%

Results improved

36%

19 %

15 %14 %

12 %

14 % 13 %

15 %14 %

10 %11 %

9 %8 %

11 %10 %

9 %

23 %

19 %

17 %

14 %

18 %

16 %

20 %18 %

11 %

13 %

11 %9 %

13 %12 %

11 %

0 %

5 %

10 %

15 %

20 %

25 %

Konkurrentchurn Eksternchurn

Introduction of first prediction model

Introduction of refined prediction model

months

annu

al d

efec

tion

rate

Churn Reduced


A Next Generation Marketing Solution

Slash marketing costs while boosting revenue and retention

Reduce customer ad fatigue Eliminate the negative impact of marketing Perfect for both inbound and outbound marketing Proven - power to extend any analytics environment The only packaged solution of its kind

Your Organization’s New Competitive Advantage


Where to find out more …

• Uplift Optimizer Support website:

http://support.quadstone.com/info/releases/#uo5.3

• Documentation– What’s new in the Uplift Optimizer release notes– Updated Uplift Optimizer help

• Uplift Optimizer Support– Web Site: http://support.portraitsoftware.com/– Email: [email protected]– Tel: US 1-800-335-3860; All +44 131 240 3140

http://support.quadstone.com/info/releases/#uo5.3

http://support.portraitsoftware.com/

mailto:[email protected]


www.portraitsoftware.com

Europe (Headquarters)The Smith Centre, The FairmileHenley-on-Thames, Oxfordshire,RG9 6AB, United KingdomT: +44 (0)1491 416600F: +44 (0)1491 416601

Americas125 Summer Street16th FloorBoston MA 02110, USAT: +1 617 4575200F: +1 617 4575299

Edinburgh39 Melville StreetEdinburghEH3 7JF, United KingdomT: +44 (0) 131 220 4491F: +44 (0) 131 220 4492

Asia PacificLevel 715-17 Young StreetSydney NSW 2000AustraliaF: +61 2 8004 9600

OsloMaridalsveien 87, Bygg 10461 OsloNorway T: +47 22 38 91 00F: +47 23 40 94 99

Questions?

Documents

What’s New in Uplift Optimizer 5.3 Patrick Surry Product Manager USA: 1 866 793 4279 Austria 0800 28 1673 Belgium: 0800 505 60 Canada: 1 866 270 8076 India