CRM REAL TIME: the new paradigm

Giuseppe Zavattoni

Head of CRM Italy

Milan, 26/9/2013

CRM Italy: evolution to date

2

2011 2012 2013

New Operative CRM

UNICA Fase 0 e 1 (IIH)

UNICA Fase 2 (IH)

�Real Time Communication among Channels

�Connection Events Real Time and Event Factory

�Sessions connection

�Web Online

�Client Info sheet

� IVR

Real Time Events (IH)

Product Centric

95% push commercial initiatives

5% behavior driven (inbound, reactive outbound)

Customer Centric

20% push commercial initiatives

80% client driven initiative (explicit needs, reactive outbound, real time trigger, market events, services)

10 years effort

Starting point

A new paradigm

E2E salesE2E sales

E2E sales for each channel

New multichannel paradigmNew multichannel paradigm

44

33

11

Real Time React

2

Multichannel contacts

Customer needs

listening

3 main levers to activate the paradigm…

Clients

CRM

OBJECTIVE: Increase sales productivity on private Individuals thanks to a new Multichannel integrated contact mode

Description

� Client contact orchestration across channels:

best effectiveness through optimized

interaction paths across channels

Examples of application

� SMS, email, bannering upon interest raised

during contact from Call Center

� Different message contents based on

Customer input

� Full commercial leverage of all spontaneous

interactions (Inbound)

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22

33

� Inbound to sale processes for Call Center

on most service calls

� Tracking of clicks online to propose

alternate Multichannel, on-offline paths

� Instant pop up to seller on “ VIP customer

present” at ATM

� Instant outbound call on Online Banking

banner click to adjust dynamically proposals,

scripts, etc.

MULTICHANNEL CONTACTS

The Concept

CUSTOMER NEEDS

LISTENING

REAL TIME REACT

� Constant stimulation of clients to express

needs

� Real Time component to react immediately

to important events, when customer

attention is high

2 examples: Dynamic web site browsing and contextual inbound offer in CC

?

CALL CENTER

WWW

•GreetingsReason for Call

•Resolution..Authentication

?

?

OFFEROFFER

OFFERSimpleQuestion

NAVIGATION OFFER BASEDON NAVIGATION

BASED ONREASON

FOR CALL

AA

BB

Email

Internet Bank

Direct Mail

SMS

Call center

INPUT / OUTPUT

Cust. sheet

Same Time

Kiosk/ATM

Mobile/ push

Web site/ social media

wwwwww

Customer

MM

AA

RR

KK

EE

TITI

NN

GG

&&

CC

HH

AA

NN

NN

EE

LL

II

NN

TT

EE

LL

LILI

GG

EE

NN

CC

EE

Real Time

Real Time

NEW Campaign ManagerReal Time

Near Real

Time

CRM DBEvent Factory RT

Scoring System

The Unica tool suite allows the management of all outbound and inbound channels

Optimized

CustomerFatigue

rules

Product

MarginChannel

cost

Channel

Capacity

What Is Unica Interact?

REALREAL--TIME MARKETINGTIME MARKETING

� Presents personalized messages in realpersonalized messages in real--time time during inbound interactions

� Personalization based on:

– Existing customer data customer data andand new information new information gained during the interaction

– Or, behavioral targeting behavioral targeting of anonymous visitors

� Designed for easy deployment easy deployment and management (“so easy a marketer can do it”)

� Meets the most rigorous performance requirementsmost rigorous performance requirements. Up to:

– 1,000s of transactions per second

– Half-second average response time

Real Time campaigns – Objectives and decisional processUnica Interact

?

OUTPUT:

Winning

offer(s)

ELIGIBILITY

Identify which offers that

segment is eligible for

OFFER DELIVER

Select & pass the required

number of offers from

scored list

SEGMENTATION

Put the customer

into a segment

OUTPUT:

Offers with scores

SUPPRESSION & INCLUSIONConsults “black lists” &

“white lists” to remove or

add candidate offers

OUTPUT:

Preliminary list of

candidate offers

SCORING

Score each offer for that

person (mix of manual and

algorithmic scoring)

OUTPUT:

Segment

AssignedINPUT:

Customer

profile

INPUT:

Session

data

OUTPUT:

Final list of

candidate offers

Interact’s real-time decisioning capabilities (1/2)

Premium Servicesvalue: 40 €

Travel InsuranceValue: 65 €

Match:60%

Match:60%

Match:45%

Match:45%

Match:20%

Match:20%

BEST

OFFER ?

Consistency across all channels

3,75 APR LoanValue: 60 €

Acceptance

LikelihoodPredictive modelsSelf-learning

Interact’s real-time decisioning capabilities (2/2)

Real-TimeProfile

UNICA INTERACT

Enrich

self-learning

models

Results

Records offer presentation

Next

BestOffers

• Session attributes

• Exact account status• Web navigation

• Call reason• Time of day

• Channel• Agent skills

• …

Real-Time contextual data

Real-Time decisioning

Client ID,

Cookie ID

Value,

Segment

Products

owned

…

Business Rules

Real-Time Scoring

Self-Learning

Segmentation

Arbitration

• Customer data

• Marketing data• Interaction history

• Transactions history

• Scores (SAS, SPSS…)

• …

Offline data

Web

Call Center

e-mail

e

Sales Reps.

POS/Kiosk

Social Medias

Mobiles

Item carted

Time of day

Pages

viewed

The Inbound Marketing process - best offer in each inbound contact

Marketing propositions for inbound channels:

Branches

Sales tips in the Sales and CRM

application in the branches

Web Site

Personalized banners and

commercial text links in

the internet banking

application

Call Centre

CRM application

in the call centre

Real time Campaigns

Dual approach to real time campaigning (Phase 1 e 2)

Interact

Event DB

& CEP

CustomerInteract

Customer

Channels ChannelsCRM, Campaign Mgmt CRM, Campaign Mgmt

Event Driven Campaigns

� Based on Event Library

� Near real time reaction on different channels

� Action on different channels

� It is a case of reactive outbound

� Based on a “conversation” on the same

channel

� Real time reaction

� Action on the same channel

� Mainly for inbound contact

Phase 1 Phase 2

Possible Use Cases - Card withheld by the ATM

Event DB & CEP

Event type: (58) Card withheld by the ATM

Occurrences: 300 per day

Channels:

• Sametime Popup to the advisor (during branch

opening hours)

• SMS to the client (H24)

Unica

ATM

SMS

Real time Events – Use Cases

SametimePoup

The client Mario Rossi 12234341 has had its card 999999 withheld at the ATM of the Branch Trento, via Galilei 1 at 13.32 for timeout reason. The card is blocked

Customer

Advisor

Dear Mario Rossi your Card has been withheld at the ATM of the Branch TRENTO, via Galilei 1 at 13.32 on the 12/10/12. Please contact us on the free number 800.001122

sms

1 2

Possible Use Cases – Stock/Bond sales

Event DB & CEP

Event type : (55) Relevant order for bond sales before

maturity

Occurrences: 500 a day

Channels:• Sametime Popup towards advisor (always)

Unica

BVI

Real time Events – Use Cases

SametimePopup

Mario Rossi 12234341 has inserted an order to sell bonds through OLB for 45.125 EUR at 16.13 on the 12/10/12. Titolo: XS0012323723

Customer

Advisor

OfferingInteractInteract

1 2

Possible Use Cases – Negative current account balance(refresh 30 min.)

Event DB & CEP

Event type: 69. Negative current account balance

(near real time 30 min.)

Occurrences: 8.000 a day

Channels:• Email to the advisor (always)

All channels available

Real time Events – Use Cases

Email

Customer

Advisor

The client Mario Rossi 12234341 has reached a negative account balance on account number 44665892 alle ore 15.13 del 12/10/2012.

Unica

OffertaInteractInteract

1 2

Levels of Targeted Marketing

Individual Events.

Typical Response rate of >30%

30%

Database Segment.

Typical Response rate of 5% – 8%

5%

Complete Database.

Typical Response rate of 0.5% – 1%1%

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Next Steps: Unica Optimize

CONTACT OPTIMIZATION CONTACT OPTIMIZATION software:

� Determines the optimal contact strategy for each

customer

� Uses powerful, integrated algorithms

� Balances business objectives and constraints with

customer preferences and history

� Achieves maximum overall marketing ROI while

satisfying the need of individual product lines and

businesses

The evolution enabled by Unica Optimize

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Today: CampaignPRIORITIZATION

• Address the need to launch

the Campaign with the

highest priority

• The “weights" are defined

mainly at campaign level

• The dimension of offer

profitability is not considered:

all the offers are considered

as profitable

Tomorrow: CampaignOPTIMIZATION

• Address the need to provide

the best possible offer

• It works on the following

dimensions:

• customer,

• channel,

• offer,

• budget,

• time,

• profitability,

• propension,

• Risk,

• Promotional costs,

• Channel capacity,

• customer fatigue

Example: Unica Optimize allows to provide the right answers

Fatigue / Capacity

� Given the limited capacity of the Call

center, what are the Customer that

will receive the offer X ?

� What Customers might receive an

offer today, considering the offers

received in the last 6 months and

the offers planned for the next 3

months?

� Given that the Customer should

receive only one offer each month

(customer fatigue), what offer to

choose among X, Y and Z ?

Margin / Budget

� What customers to target for any

specific offer in order to maximize

the margin ?

� Given that a Customer is eligible for

an offer, what channel to chose in

order to maximize the margin ?

� Given a budget limit, that means not

to exceed the numer of targeted

Customers, what are the Customers

to be excluded ?

Main Dimensions for Optimization (example)

219/20/2013

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� Channel Capacity

� Customer Capacity (margin, customer fatigue, propension, risk,

…)

� Dpendencies among Offers

� Time

� Budget

Constraints