Delivering Smarter Customer Interactions

Delivering Smarter Customer InteractionsDefining the Customer Insight Platform to Get You There

Featuring

Brandon PurcellSenior Analyst

Forrester Research

Steven NoelsCTO & Co-Founder

NGDATA

WEBINAR

© 2016 Forrester Research, Inc. Reproduction Prohibited 2

Imagine a world in which….

1. Customer data captured from all interactions:

2. Data is collected and managed in a central

repository

3. Customer analytics unlocks valuable insights

4. Insights are operationalized across channels

3© 2016 FORRESTER. REPRODUCTION PROHIBITED.

“We are drowning in data and starving for insight.”

— Global Bank


Customer insights are the gold buried within your data


P = potential value of data

E = value extracted from data

P E/P = ~1

Customeranalytics

Customer analytics unlocks the potential value in your data


What is Customer Analytics?

Customer analytics uses customer data and analytic insight to design

customer-focused programs that win, serve and retain customers.


The potential value for analytics is real across the customer lifecycle

Source: June 19, 2014, “How Analytics Drives Customer Life-Cycle Management” Forrester report


Customer analytics is different. Really.

METHODS DATA TECHNOLOGY

Descriptive

Predictive• Predictive

modeling• Forecasting• Simulation

Prescriptive

• Reporting & measurement

• Business intelligence

• Optimization• Decision

arbitration

Internally-sourced, at-rest, Structured

Externally-sourced, unstructured

Multi-sourced, in-motion, multi-structured

Relational

Non-relational

• CRM, EDW, POS, Web

• Social, location, VoC

• Sensor, open data, IOT data, device data

• Hadoop, noSQL

• Traditional EDWs

Dat

a S

cien

ce &

C

usto

mer

Ana

lytic

sTr

aditi

onal

A

naly

tics


Source: February 2014 “TechRadar™: Customer Analytics Methods, Q1 2014”

Deciding where to begin may be the hardest part


Source: “Close The Insights To Action Gap With A Clear Implementation Plan”

The analytical process begins and ends with business requirements


› What is the key business objective of the project?

› Who is the project owner? Who are the relevant stakeholders?

› What will the cost and benefits of the project be?

› Are there risks / constraints we need to take into account?

› What would an ideal solution look like in action?

› How will we measure the success of this project?

› What is my project plan?

Key business questions before beginning analysis


Source: “Analyzing Analytics: How To Measure The Impact Of Customer Analytics”

Select an objective with a measureable financial impact


Now let’s turn to the data


Image Source: http://en.wikipedia.org/wiki/File:Google_Glass_detail.jpg

Customer data ain’t what it used to be


Data type Definition Examples

Numerical

Continuous All numerical values, including fractions

Purchase amount

Discrete Only integer values Website visits

Categoric

al

Nominal Qualitative data without order

Region

Ordinal Ordered qualitative data Level of education

Binary Qualitative data with 2 values

Offer click

Time and date Time and date data Timestamp

String Text data Email content

Actually…in analytical terms, there are only a few types of data


Developing a single source of customer truth is onerous… but essential

Source https://vision.cloudera.com/using-big-data-to-drive-a-true-customer-360/


Business objective Data Customer

analytics

Choosing the right analytical method depends on your business objectives and your data


Now let’s explore the menu

Chez Customer Analytiques


The customer analytics “menu”



Customer experience analytics methods:• Customer satisfaction

analysis• Customer engagement

analysis• Customer journey

analysis

Methods which improve the customer experience



Personalization analytics methods:• Next best action• Recommendation

analysis• Cross-sell and

upsell analysis

Methods which drive personalization



Acquisition analytics methods:• Behavioral customer

segmentation• Customer lifetime

value analysis• Customer lookalike

targeting

Methods which drive acquisition


Aren’t we forgetting something?


analytics



analytics ACTION

Aren’t we forgetting something?


New methods deliver new output and require new operational processes


All possible data Untested insights

Potential learnings

All possible actions

However, we still see gaps between data and action

Source: April 27, 2015, “Digital Insight Is The New Currency Of Business” Forrester report


Systems of insight operationalize customer analytics

All Data PossibleActionsInsights-to-execution

process

Insights team

Digital insightsarchitecture

Rightdata

Effectiveactions


THIS is a system of insight

1. Customer data captured from all interactions:

2. Data is collected and managed in a central

repository

3. Customer analytics unlocks valuable insights

4. Insights are operationalized across channels

Analytics in ActionCustomer Insight Platform

Featuring

Insight-Driven Processes

ACTION

INSIGHT

Customer DNA

DATA

Big DataSources

Enterprise Data Sources

Dashboards BI or Analytics

Tools

mobile online physical IoT social Call center Credit card 3rd party mail email

One Solution Driving Your Customer ExperienceLily Enterprise: The Customer Experience Operating System (CX-OS)

ONE Solution to:

• Capture data across all channels

• Gain real-time insights from analytics

• Drive opti-channel actions

SOLUTION

OPPORTUNITY

RESULTS

• Offer the customer the next best product to improve customer’s Telenet experience.

• Guide the call center advisor to sell the most relevant products.• Alerts advisors in case special attention is needed.

• Setting up and maintaining the complex business logic rules within the application.

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

• Addressable campaigns - using viewers’ data to determine the right ad to show at the right time.

• Personalized offers or services – targeting dormant customers to reduce potential churn.

• One Care Portal - providing viewers with personalized information in their personal portal.

Telenet (part of Liberty Global group), Belgium’s largest provider of cable TV and broadband cable services to close to 5 million service subscribers, needed to reduce churn propensity and lower broad marketing costs, while improve customer loyalty.

Targeted Outbound Marketing Programs

With the international expertise of NGDATA, our CRM department now exists at the center of all our inbound and outbound customer interactions, sharing real, actionable business intelligence and insights, executing hundreds of targeted campaigns on a yearly basis.

- Bert Van Driessch, Director of CRM and Consumer Intelligence, Telenet

REDUCED ATTRITION BY MORE THAN20

%

INCREASED SEGMENTED CAMPAIGNS FROM 100 CAMPAIGNS PER YEAR TO NOW

MORE THAN 750 PER YEAR, WITH PERSONALIZED CONTENT

MOBILE CUSTOMER BASE INCREASED

MORE THAN 4X WITHIN A FEW MONTHS OF ITS AVAILABILITY

INCREASED RETURN RATE ON SALES CAMPAIGNS BY 300-400%

Belgium’s largest provider of cable TV and broadband cable services

SOLUTION

OPPORTUNITY

RESULTS

• Belfius’ key objective was to propose the right offers - actions with the right messages via the right channels, at the right moment, in a personalized way - for all products and all channels available within the bank. They wanted to achieve this by fully leveraging their existing analytics capabilities and adding real-time analytics to support their digital channels.

• NGDATA brought all of Belfius’ data together to get an individual-level view of each customer in one solution.

• The first specific use case focused on a next best action program around their pension savings product offerings. First, they wanted to know which customers had the greatest propensity for specific products, and to devise specific messages to them based on their behaviors and backgrounds. Second, they wanted to nurture their targets’ interest in the Simulate Loan Calculator. Third, they wanted to get those targets into the sales flow, and to see them through the path-to-purchase.

• An array of content channels were used to entice the targets to take action, including a banner campaign that was personalized to the users.

Belfius is a bank and insurance group that is owned by the Belgian federal government. Belfius is not listed on the stock exchange and is made up of a bank, an insurance company and various other subsidiaries.

• Belfius is now able to use that single customer profile, with real-time scoring and analytics across all channels, and for all banking products

• Belfius is now able to implement additional use cases, based on a jointly defined roadmap that includes next best action, cross- and upsell, loyalty and churn prevention programs

Next Best Action ProgramsBanking & Insurance

SOLUTION

OPPORTUNITY

RESULTS

• Essent wanted to deliver better service to their customers while lowering their call center costs – specifically around inbound calls regarding invoicing - which can be lengthy and costly.

• Customer DNA was created on each customer from data stored in different systems (CRM – contract, billing, usage, etc., and contact interactions from inbound and outbound activities – call center, mail, website, etc.) to better understand their behaviors and propensities when it came to invoicing.

• Once they had the Customer DNA in place, they created a model to enable them to predict which customers were most likely to call about invoices.

• The ones mostly likely to inquire received a personalized video, with information about their current status of usage, which would reflect on their next invoice. Results of views were also fed back into the system for further insights.

Essent supplies electricity and gas to 350,000 customers in Belgium, owned by top 5 European (German) energy supplier RWE Group

ROLLING OUT THE PERSONALIZED VIDEOS TO THE RIGHT CUSTOMERS, RESULTED IN

CALL REDUCTION OF 49%

FOR CUSTOMERS WHO VIEWED VIDEO, DIRECTLY IMPACTING CALL CENTER COSTS

OVERALL CALL REDUCTION OF

30%WITH THE STATISTICAL MODEL

THERE WAS A LIFT OF 5.6% IN PREDICTING THE CALLERS

Better Service, Lower CostsEnergy Supplier

Lily, the CX-OSCustomer- Centric by

Design

Real-Time

Learning from Feedback and

Analytics

Fast Benefit Realization

Dramatic Increase in Results (x10)

Enabling a Collaborative Ecosystem

Always On Capitalize on Existing Systems

Immediate Value from Your Data Lake

Open Architecture

Respecting Security and

Privacy

Steering Opti-Channel

Actions

Data-DrivenCustomer-Centric

Lily Enterprise: Key Features and Benefits

Recommendations

Featuring


CommitmentAdoption

Applications

SkillsStructure

Partnerships

Sources ManagementPreparation

MethodologyMetrics

Business KPIsROI

WorkflowPrioritization

ExecutionSharing

ProductionConsumption

Activation

STRATEGY ORGANIZATION DATA ANALYTICS PROCESS TECHNOLOGY

Take Forrester’s Assessment for Customer Analytics – Measure your capabilities across six dimensions


Organize for analytics

We have an analytics center of excellence or shared service across all channels and business units

We have a centralized measurement and analytics team for the entire organization

We have a decentralized measurement and analytics team aligned to a channel or business unit

0% 20% 40% 60%

22%

37%

41%

Which of the following structures best represents where the analytics team sits

in your organization?


Develop ROI calculations to prioritize projects and measure impact

26%

Just 26% report that measurement and analytics projects are prioritized based on a methodical ROI/business justification process


Invest in scalable customer

data architecture


Partner with a system of insight provider to jumpstart your capabilities

Five classes of insights platforms


Prospe

ct ac

quisi

tion

Custom

er ac

quisi

tion

Custom

er on

-board

ing

Custom

er ret

entio

n

Custom

er loy

alty a

nd en

gage

ment

Custom

er rec

overy

and w

in-ba

ck

24%

38%

16%

41% 40%

26%

Stages of the customer lifecycle where respondents reported "high usage of analytics"

Apply analytics across the customer lifecycle


Don’t be afraid to get your hands dirty


It WILL be worth the effort

Brandon PurcellSenior Analyst

Forrester [email protected]

Steven NoelsCTO & Co-Founder

[email protected]

Thank you. Any questions?

Technology

Delivering Smarter Customer Interactions