Generating Customer Insight with the Multi-Partner Program HappyDigits. Athens, 24th September 2008 Thorsten Franz

Transcription

1 Generating Insight with the Multi-Partner Program HappyDigits Athens, 24th September 2008 Thorsten Franz

2 Generating Insight with the Multi-Partner Program HappyDigits A brief introduction: Who is CAP, what is HappyDigits? The data base for generating detailed insight into customer behavior Application of statistical methods and measurement of success Seite 2

3 CAP is a full service CRM provider Key facts Competencies Employees: 110 Transaction management on proprietary IT platform Revenue: 71 Mill. Certified processes & data protection (TÜV-certified) Shareholding: 51:49 Intelligence (data mining & geo-analytics) Managing Director: Thorsten Franz Managing Director BL BL BL BL BL BL BL BL BL oriented campaign management Seite 3

4 What do we do? CRM? Choose whatever you like! Closed Closed loop loop One-to-one One-to-one aquisition aquisition Web Web Segmentation Segmentation retention retention Dialogue Dialogue marketing marketing Campaign Campaign management management revenue revenue One-to-One One-to-One Premiums Premiums Below-the-line Below-the-line Data Mining Data MiningCross Cross Selling Selling value value Aktivierung Aktivierung Selections Selections Up-Selling Up-Selling Churn Churn prediction prediction Target groups Target groups marketing marketing CLV CLV Segmentation Segmentation Response Response controlling controlling Coupons Coupons Promotions Promotions Reactivation Reactivation profile profile Incentives Incentives Direct Direct marketing marketing New-customer potential New-customer potential Win-back Win-back Affinities Affinities Activation Activation Individualization Individualization Regular-customer care Regular-customer care Seite 4

5 CAP offers three key product categories Loyalty programs CRM services Giftcards Multi partner Operations Mall concept White label Analytics IT management Business & Competition Subsidiary & Channel Products & Product Groups s & Potential Handling Activation Charging Discharging Account query Seite 5

6 HappyDigits is the leading multi partner network in Germany Department stores Specialty retail Telecom Grocery stores Pharmacies Others Travel & Mobility Financial Services Mail-order Regional partners Alliances Online partners Seite 6

7 Objective: Efficient Organization of Relationships to Maximize Value Creation relationship management Initiating the relationship Establishing the relationship Reinforcing the relationship Utilizing the relationship Revitalizing the relationship Terminating the relatonship Which customer is addressed in which phase with which content at which time via which channel? Basis: Transformation of data into customer insight! Seite 7

8 Generating Insight with the Multi-Partner Program HappyDigits A brief introduction: Who is CAP, what is HappyDigits? The data base for generating detailed insight into customer behavior Application of statistical methods and measurement of success Seite 8

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10 HappyDigits key performance indicators underline the strong basis for an efficient CRM > 33 mill. personalized cards > 53% permissions (plus program reach) > 22 million households (actual reach) < 3% non-delivered mail > 1.1 mill. Mastercards > 61% activity Seite 10

11 Analysis Starting Point:Together with HappyDigits,CAP has a Unique Supply of Primary Data at its Disposal Personal data Socio-economic data Interests/attitudes Address Age, gender Contact information, etc. Occupation, income Size of household / family Children, etc. Interests (e.g. fashion, cars, DIY, telecommunication, sports) Attitude: Critical, adventurous, belligerent, etc. Registration data Familiarity with advertisements Original partner Type of card, etc. Data on Internet usage Programs used Internet purchases Indications for usage intensity Cash-in data Cash-in channels / - frequency Coupons, give-aways, etc. Rewards: Events, enjoyment, etc. Data on buying behavior Partners (independent of type of business) Transaction type, sales channel (mailorder, stores,etc) Product lines, transaction location, etc. Purchasing times (seasonal, weekends, etc.) Telecommunication data Revenues from fixed net- / mobile communication Purchases in the telecommunication sector (T-Punkt stores, T-Shop: Fixed-net terminal equipment, mobile phones, accessories, etc.) Endless data derivatives via data mining! Seite 11

12 Analytical CRM with a Broad Data Base - Employing the Most Modern Tools and Systems HD data base: Efficient and comprehensive data warehouse (DWH) HD data analysis employing latest software tools DWH DB2 Size > 3 Terabytes More than 700 characteristics per participant Continuous up-dating of data base Continuous evaluation ofdata base with regard to data quality Interactive reporting (key indicators, monitoring, etc.) Campaign management (data selection, standardized campaign controlling) Transformation Daily data delivery from partners Data mining (customer classification, customer segmentation, forecast models) Seite 12

13 Generating Insight with the Multi-Partner Program HappyDigits A brief introduction: Who is CAP, what is HappyDigits? The data base for generating customer insight Application of statistical methods and measurement of success Seite 13

14 We Use Diverse Methods as a Statistical Basis for CRM Descriptive = uni-/bivariate analyses Data mining = multivariate analyses Time series analyses, allocation, crosstabulation, deviation analyses Decision trees, regression, cluster analyses, association approach Goal: To validate hypotheses! Applications: profiles structure analyses Time series and comparisons evaluation Goal: Reveal insight! Applications: Buying forecast models Affinities deviations segmentation Shopping cart analyses Seite 14

15 Analysis of Data: Buying Behavior Forecasts Via Multivariate Mining Methods insight What specifically do I know about the card holder? Simple descriptive analyses and profiles segmentation How should I segment my cusomer base, and what are the relevant segments? Communication-specific clustering of customers evaluation behavior forecast How do I evaluate a card holder? Who are my valuable customers? Multi-dimensional customer assessment (basis: RFM) How will the card holder behave in future? Who has affinity w/ which products a. what are their buying intentions? Forecast models via data mining Complexity of methods Seite 15

16 Evaluation: CAP Defines Three Different Categories of Value Marketing value Potential value Forecast value Findings Evaluation of activities and participants understanding of the program Evaluation of new participants with regard to topcustomer potential Evaluation of the future development of existing customers Goal Activity- and valueoriented segmentation for CAP and Partners Evaluation of new customers based on registration data Forecast of future value segments Application Segment-specific analyses Satisfaction - and success indicators for continued program development Criteria for addressing customers within CIC Variated communication with new participants Utilizing churn movements for communications purposes Forecasts of future developments in the entire portfolio Seite 16

17 Diverse Applications of Data Mining for Derivations in Lifecycle-Oriented Occasions of Communiation Gain new customers and interested parties! Develop your customers and utilize their potential! Recognize and retain your top customers! Prevent churn and revenue loss! New-customer affinities Product affinities Reward affinities...churn analyses Loyality Sales-channel affinities Activation analyses Cross-selling affinities Reactivation analyses Prospectivecustomer affinities Up-selling affinities Churn analyses... Win-back analyses time Seite 17

18 CRM-based marketing: We support our partners in getting customer insights and generating added value Insight Added Value 1. based analyses Purchase data analysis for optimizing the range of articles and the statistical evaluations of sales promotions 4. Addressing customers related to occasions and their needs (e.g. holiday special) providing specific information and product offerings 2. Consumer profiles and customer segments (PoS and online) based on intersectoral customer- and transaction data of the entire HappyDigits data pool 5. Individualised and automated customer service (based on historical customer data) via PoS terminals in addition to the card concept In Development 3. Store- and location analyses Based on geographic HappyDigits information of customers & potential customers Store X 6. Targeted Initialisation / Activation First-year program as a tool to accompany, explain the program and activate new members to use it Seite 18

19 CRM-based marketing: CAP provides high-frequency, fully personalized contact platforms for its partner network HappyDigits contact platform Examples of marketing media Mailings Online Call centers > 60 million items p.a. > 40 million newsletters p.a. > 20 million web page visitors p.a. > 500,000 calls p.a. Infomailing Digits account status, partner coupons Partner-specific print variations, personalization and supplements Mailed 4 times per year Target group mailings Basis: data mining analysis Integrated partner offers, depending on target group characteristics Mailed 2 to 4 times per year Partner mailings Content and mechanism individually tailored to partner needs Use of affinity models to boost effects & impact Seite 19

20 Variations Lead to a One-to-One Account balance Partner utilization Cash-in frequency Consumption affinity Online affinity Types of rewards Distance to current partner POS Living situation Distance to new partner POS Partner affinity Place of residence Age Income Interests affinity Range of purchases Seite 20

21 Variations Lead to a One-to-One Individualization of: Senders / Partners Offers / Bonuses Benefits Texts Seite 21

22 Analytical Campaign Management Loop for a Continuous Optimization in Addressing s Analysis Selection Action Analysis Descriptive analyses Selection Campaign execution 3-tiered campaign monitoring: ROMI Data mining Geo analyses Seite 22

23 It works: Proven, Effective Support of the CRM Strategy in Partner Enterprises! Increase in revenues through data mining Increase in average sales receipts Coincidence Partner score CAP score Percentage of mails sent Through HappyDigits a household-variable, double model lift value compared to the partner model for DSL sales +41% Ø sales receipt witht HappyDigits customer card Gaining new customers through targeted coupons Significant reduction of customer churn add. revenue grossearnings Earnings four times the costs invested! total costs Digits coupons add. profit Cancellation rate Control group: Cancellation rate Target group: Churn -70% Target group selection based on HD churn models Seite 23

24 Thank you. Contacts Thorsten Franz Managing Director CAP Advantage Program GmbH Innere Kanalstrasse 98 D Cologne Phone: thorsten.franz@customer-advantage.de