Customer Experience Management

IBM Global Business Services Customer Relationship Management (CRM) Customer Experience Management Realtime Personalised Decisioning

Realtime Personalised Decisioning Every customer interaction is an opportunity If you could manage every customer interaction, what decisions would you make? The quality of these decisions will drive the success of your business. Realtime Personalised Decisioning is designed to help you articulate, manage implement better decisions within customer interactions. For example, when a customer contacts a mobile operator via a call centre, online or face-to-face Realtime Personalised Decisioning can optimise each interaction, adding value for both parties. If the customer s mobile phone contract is due for renewal he calls about a new deal, the agent makes important decisions on what to offer (such as a new hset, additional minutes or other offers) to retain the customer, while maximising profit for the company. Realtime Personalised Decisioning is all about making better informed decisions at every interaction. Making this conversation relevant improves the customer experience allows offers to be made. Within the Financial Services, when customer behaviour indicates that the account might be ended, the agent can take action to underst resolve any service issues rather than trying to sell anything. Alternatively, usage or intention data could indicate an opportunity to tailor service packages to customers future spending needs increasing customer satisfaction. In many cases, a much more personalised experience can be delivered. For instance, when a customer buys airline tickets online, leading companies are now using the booking process to cross-sell accommodation, insurance even hire cars. Yet there is still an opportunity to make these offers more personalised based on information gathered during previous bookings to drive more value for the customer increase cross-selling. A major UK mobile operator implemented Realtime Personalised Decisioning with outsting results: Daily conversion rates increased to 85% Churn (rate of customers leaving) 3% lower Bill value increased by 15% in first month after contact. Org Role Design Stage 1: Vision Strategy Stage 2: Business Change Stage 4: Design - Build - Learn - Improve Process Requirements Detailed Tech Live Offer Design Offers Models Org Change Data Design Measurement Stage 3: Iterative Development High Level Process Design Roadmap Key elements of the IBM approach Training Iterative approach Realtime Personalised Decisioning three challenges Based on IBM s unrivalled experience in implementing Realtime Personalised Decisioning, we have identified the three most significant challenges your company will face: Organisational change Major changes are required in roles capabilities for your Marketing Sales functions operational staff. With over 3000 strategy change consultants, IBM has the change management skills to help you create the new roles within your business. Analytics need to be business driven Actionable analysis is crucial. IBM has a European Centre of Excellence for analysis we can help you generate accurate timely data. We publish internationally on closed loop marketing our industry data templates will ensure you collect the right data measure the right areas (this is where many companies fail), while maintaining manageable adaptive rules for the long term. Think big, start small The decision rules, analytics data requirements will get complex. The key is to develop these capabilities iteratively, starting small, using stard templates more static data gradually improve the sophistication of the rules, data feeds processes over time. IBM s Rational Unified Process (RUP) is an iterative development methodology which helps you achieve this in a controlled manner. 2

IBM s unique approach IBM fully understs the complexities of realtime decisioning. We recognise the importance of having a clear vision an iterative approach which helps you achieve it, developing the decisioning capability in measured steps whilst embedding the process changes into new organisational roles: Stage 1: Vision Strategy This stage is about articulating a clear vision for Customer Experience Management (CEM) then establishing a contact strategy to address how Realtime Personalised Decisioning can support this. For the CEM vision, you need to ask: How can CEM create value for your organisation? What infrastructure or financial resources will you need to deploy? How will your staff be affected? Articulating a clear vision involves three strategic requirements: Understing the customer experience what are their needs how can you exceed them? Designing the br experience consider the look feel of each interaction, as well as the product Establishing a positive working environment of continuous assessment improvement. Following this, a contact strategy helps you address all the questions needed for an effective approach to customer contacts, such as: What is the overarching strategy for particular customer segments? What is your channel strategy for each customer segment? What is the customers preferred channel? How can interactions maximise information such as data protection permissions? How do you prioritise which customers to focus on for example, those with the highest lifetime value, or those who provide the highest uplift from the interaction? If a customer receives an offer on an inbound channel, when can you make an outbound call? IBM has a deep knowledge of contact strategies. We know that asking these difficult questions early using our proven template will generate a robust strategy help reduce your deployment costs. A contact strategy enables us to manage prioritise all our contacts with all our customers Channel Capacity Limiter - Constraints by channel - Activities prioritised to channel based on strategic priorities - Tracking offers managing delivery by channel Proposition/Objective - Campaign KPI s - Customer Segment Strategies - Response Capture & Measurement How? Why? What? Proposition Prioritisation - Customer Segment Strategies - Priority of offers for customers with multiple offers - Priority of offers across all campaigns - Scoring / Propensity modelling - Merge or de-dupe offers Frequency & Recency Rules - Customer s segment - Inbound / outbound - Max / min # contacts - Max / min recency of contact - Product group When? How? Who? Channel Determination - Customer s preferred channel - Preferred channel for customer/ offer/ segment - Based on previous contact history - For telephony to appropriate agent - Multi-channel approach consistent with customer value Proposition Targeting - Defined by Marketing Manager - Manage customers throughout the lifecycle - Triggers/Events models available - Customer s opt in/out permissions 3

Stage 2: Business change To maximise the benefits of realtime decisioning, role design is required to develop new ways of working. This is coupled with organisational change training to embed these changes within the company. Stage 3: Iterative design build process After completing a high-level design roadmap, the whole approach becomes iterative learning by observing actual customer behaviour continually improving the effectiveness of the offers. The development of a Realtime Decisioning Capability will dramatically change your marketing approach; the change to staff roles can be extensive. How will your marketing, sales analytical resources collaborate when offers can be developed, priced go live in one day? How does your budgeting marketing strategy change to recognise that inbound contacts now offer the greatest return? IBM recommends an iterative approach to help you: Plan key changes, including high-level role changes, capability development, training coaching Design implement detailed changes Review, enhance evolve to manage performance. We have found that in many implementations it is often difficult for agents to adapt to new roles for Marketing Sales resources to move from a traditional approach. IBM supports this change by familiarising staff with early, but fully operational, versions of the tool. For staff to fully appreciate the tool, they need hs-on experience not just awareness. IBM has learned from experience that Realtime Personalised Decisioning is best developed using an iterative approach. Risks are tested retired early by developing using early releases of the tool generating real data to find out what actually works before finalising the design. During the iterative design build process: Business change is supported: Employees whose roles will change use a version of the tool to create run a test offer. This is part of a real campaign moves discussions from theory to reality, helping embed the changes within the organisation. Quality of decisioning is improved: The models rules are complex the offers predictive models that work best need to be identified in a live situation. Risk is reduced: Risks are established given early visibility so the approach can be adjusted to ensure overall objectives are met. The iterative approach does not stop after the initial design build is completed, new models offers are improved in an ongoing continuous iterative process. Enabling business change IBM Rational Unified Process (RUP) Plan, align mobilise RUP is an iterative software development process framework, which can be tailored adapted for Vision commit Case for change; including change trigger Develop Develop capability capability Lead, capacity communicate capacity engage Design Focus on on organization organisation outcomes governance Transform culture benefits Align individuals Manage teams performance Design implement Benefits delivered the Realtime Personalised Decisioning needs of your organisation. With best practices adopted in thouss of projects worldwide taught as part of the curricula in hundreds of universities, the RUP methodology is fast becoming the de facto industry-stard software development process. Enhance evolve 4

IBM s unique approach continued Stage 4: Design build Detailed process requirements technical designs are completed for each iteration. The models offers are built the data designed for each iteration. This is accelerated using stard IBM templates. Measures are implemented so that when the offers go live, you fully underst their impact. This stage comprises five phases: Process requirements IBM has process templates that are designed to help you underst identify functional requirements system interfaces for Realtime Personalised Decisioning. This phase can be used to develop or challenge your existing process models. Plan Marketing Programme Evaluate Marketing Opportunity Design & Store Content / Creative Design/ Set-Up Offers Plan Resources Co-ordinate Offer Activity Set Up Data Required Set Up offer Control Targeting Criteria Execute Campaign Set Up Treatments, Phases Set Up Response / Evaluation Mechanism Track Evaluate Results To be able to set up a response measure based on a customer event/usage To be able to set up an inferred response measure that is based on a level of activity To be able to set up a mechanism to measure response over a multi-phase campaign To set up evaluation report in advance of carrying out an offer Extract from IBM Realtime Decisioning Process Template Models offers Stard blueprints are used to accelerate the building of offers models, while ensuring rules are held within a well-defined structure for easier management during development. Data design Set Up Automated / Event - Driven Offers Realtime Personalised Decisioning is dependent on data available to the decisioning engine. IBM s iterative approach allows data to be tested analysed against real customers using specifically designed industry data models templates. Campaign Strategy Attributes that are good predictors of response Learning Objectives Direct Purchased Value Responsiveness Usage Satisfaction Browsing Session Global Age Preferred channel / permissions Change of address event Etc. Income B House Type Newspaper readership Etc. Last year profit Potential profit LTV Etc. Overall responsiveness Channel specific responsiveness Most responsive channel Etc. Average voice revenue Call patterns (call to other networks) Early adopter score Etc. Complaints in last 6 months Churn likelihood Hset age Etc. Top data interest category Categories viewed price / description Channels used Etc. Session events Portal zone now in Highest interest in session Etc. Time of day Season Channels capacity position Etc. Extract from IBM Realtime Decisioning Data Template Monthly update (exception = events) Daily update (+ after key events) Updated in realtime when offer requested The Telco template above shows nine common types of data attribute the associated update frequencies. Having the underlying data required to calculate these data points, as well as the level of aggregation needed, saves integration time cost, ultimately improves response rates. Technical design A well-designed architecture will ensure your applications meet your business needs, perform acceptably adapt accordingly. IBM s approach involves producing a high-level roadmap defining how this will sit alongside existing solutions applications what existing data sources it will utilise. Detail designs are then carried out for each iteration. Significant savings have been realised by initially testing an organisation s offers models against static datasets in early iterations before going ahead with full integration. Measurement The last phase involves understing the impact of the trial live offers, in terms of response lessons learnt for example by operational staff. Having a clear wide-reaching approach to measurement is critical IBM will help you analyse the true impact, as well as identifying areas for improvement. 5

Why IBM? A wealth of experience in implementing realtime decisioning A truly iterative approach utilising stard templates a deep understing of the analytics Knowledge experience of the extensive business changes required The right people with the right skills. Arrange a feasibility session To find out how Realtime Personalised Decisioning can help your business, contact: Rod Street +44 (0) 7802 495 695 or Rod.B.Street@uk.ibm.com Jon O Donnell +44 (0) 7802 940 882 or Jon.ODonnell@uk.ibm.com Aidan Toase +44 (0) 7715 546 447 or Aidan.D.Toase@uk.ibm.com IBM United Kingdom Limited Marketing publishing services (emaps) Normy House PO Box 32 Bunnian Place Basingstoke RG21 7EJ United Kingdom The IBM home page can be found at ibm.com IBM, the IBM logo, ibm.com, IBM Global Business Services Rational Unified Process are trademarks of International Business Machines Corporation in the United States, other countries, or both. Other company, product service names may be trademarks, or service marks of others. References in this publication to IBM products, programs or services do not imply that IBM intends to make these available in all countries in which IBM operates. Any reference to an IBM product, program or service is not intended to imply that only IBM products, programs or services may be used. Any functionally equivalent product, program or service may be used instead. IBM hardware products are manufactured from new parts, or new used parts. In some cases, the hardware product may not be new may have been previously installed. Regardless, IBM warranty terms apply. This publication is for general guidance only. Information is subject to change without notice. Please contact your local IBM sales office or reseller for latest information on IBM products services. Photographs may show design models. Copyright IBM Corporation 2007 All Rights Reserved. 07-000795 (04/07) HW