1 Managing Self-evolving Portfolios of Customer Profiles Petros KAVASSALIS Themis ZAMANI ITS Berlin September 4-7, 2004

11

Managing Self-evolving Managing Self-evolving Portfolios of Customer Portfolios of Customer

ProfilesProfiles

Petros KAVASSALISPetros KAVASSALIS

Themis ZAMANIThemis ZAMANI

ITS BerlinITS Berlin

September 4-7, 2004September 4-7, 2004

22

Paper authorsPaper authors

Petros KAVASSALISPetros KAVASSALIS Themis ZAMANIThemis ZAMANI Michael MPATIKASMichael MPATIKAS Zoi POLITOPOULOUZoi POLITOPOULOU Haralambos SABALISHaralambos SABALIS Ntina SPYROPOULOUNtina SPYROPOULOU

24/7/200424/7/2004

AgendaAgenda

Marketing goes digitalMarketing goes digital Technology-based MarketingTechnology-based Marketing Internet & Mobile channels emergeInternet & Mobile channels emerge

Challenges aheadChallenges ahead

The ATL Messaging Management The ATL Messaging Management Engine project (Univ. of Crete)Engine project (Univ. of Crete)

Concluding thoughtsConcluding thoughts

Petros KAVASSALIS <[email protected]>, ITS Berlin 2004Petros KAVASSALIS <[email protected]>, ITS Berlin 2004 44

ME under pressureME under pressure

Marketing executives (ME) learn to live with Marketing executives (ME) learn to live with multiple marketing technologiesmultiple marketing technologies Marketing Campaign ManagementMarketing Campaign Management Enterprise Marketing ManagementEnterprise Marketing Management Digital Direct MarketingDigital Direct Marketing Marketing and Sales Effectiveness TechnologiesMarketing and Sales Effectiveness Technologies

New issues ariseNew issues arise Prove marketing operations performanceProve marketing operations performance Customer-by-customer profitabilityCustomer-by-customer profitability


What exactly happens?What exactly happens?

Most new marketing technologies are enabled Most new marketing technologies are enabled because of the proliferation of the marketing channelsbecause of the proliferation of the marketing channels

But also enable companies to store But also enable companies to store datadata

INTERNETMOBILE

data

customers


ImplicationsImplications

Increased data storage together with new Increased data storage together with new capabilities for measurement and reportingcapabilities for measurement and reporting Lead to a more “granular” marketing (down to Lead to a more “granular” marketing (down to

customer detail)customer detail) Tighten customer relationships by encouraging Tighten customer relationships by encouraging

dialogue dialogue Allow for personalized marketing content (personal Allow for personalized marketing content (personal

messages, special discounts)messages, special discounts) Help companies to develop an enterprise-wide Help companies to develop an enterprise-wide

view of the customerview of the customer


Marketing ManagementMarketing Management

TT MM EE AA CC R R NN KK OO EE LL TT OO II GG NN II GG EE

SS

Needs for :Needs for : Efficient management of collected Efficient management of collected

datadatao Systematic collection of customer Systematic collection of customer

feedbackfeedbacko Provision of analytical Provision of analytical

informationinformation

Effective privacy protectionEffective privacy protectiono Enterprise-wide privacy policiesEnterprise-wide privacy policieso Privacy regulation including self Privacy regulation including self

regulation (technology regulation (technology embedded)embedded)


AgendaAgenda






Do data have value?Do data have value?

Users

Data

1. Visit sites2. Send messages3. Purchase goods

Can Data beCan Data be CollectedCollected StoredStored DetailedDetailed IndividualizedIndividualized LinkedLinked


Yes! If you can build knowledgeYes! If you can build knowledge

[See: Boisot & Canals, Dosi & Egidi, Kogut]


Data Data Information: Information filters on data Information: Information filters on data (structure data, recognize regularities)(structure data, recognize regularities)

Customer profiles = Information filtersCustomer profiles = Information filters What is a customer profile?What is a customer profile?

Information repository Information repository A historical record of the behavior of a customer or prospect A historical record of the behavior of a customer or prospect

while interacting, via an electronic channel, with a particular while interacting, via an electronic channel, with a particular company or product(s)company or product(s)

Comprises pairs of <objects (or events) – attitudes>Comprises pairs of <objects (or events) – attitudes>

Builds a historical summary of each prospect/customer’s Builds a historical summary of each prospect/customer’s behavior, which may be updated not only through the behavior, which may be updated not only through the accumulation of new marketing information but also with accumulation of new marketing information but also with transaction data (sales)transaction data (sales)

Efficient data managementEfficient data management


Customer profiles in practiceCustomer profiles in practice

Internet User Internet User Site 1, 2, 3…. nSite 1, 2, 3…. n

Mobile UserMobile User Service 1, 2, 3…. nService 1, 2, 3…. n

duration of visit to each site

number of page views during each visit

items viewed

Frequency of visits

other attitudes during site’s navigation

response date and time

conducted actions (participation in a SMS poll or expression of an opinion through a SMS message)

content of customer message (s)

Frequency of participation

other attitudes

SMS campaign


Effective privacy managementEffective privacy management

Information Information Knowledge: Enterprise-wide privacy management Knowledge: Enterprise-wide privacy management (impose access controls and multiple restrictions on collected PII (impose access controls and multiple restrictions on collected PII use, to act in and upon its environment consistently with rules use, to act in and upon its environment consistently with rules and standards)and standards)

IBM e-P3P (IBM Platform for Enterprise Privacy Practices = IBM e-P3P (IBM Platform for Enterprise Privacy Practices = Privacy Enabled Technology, PET)Privacy Enabled Technology, PET)

What is IBM e-P3P? What is IBM e-P3P? ((http://www.zurich.ibm.com/security/enterprise-privacy/http://www.zurich.ibm.com/security/enterprise-privacy/) )

A framework enabling business to publish clear privavy promises A framework enabling business to publish clear privavy promises and enforce these promises throughout the enterpriseand enforce these promises throughout the enterprise

A privacy architecture defining A privacy architecture defining o What data are collectedWhat data are collectedo For what purpose they will be usedFor what purpose they will be usedo How long they will be retainedHow long they will be retainedo How and when these data may be delivered to third parties How and when these data may be delivered to third parties

(beyond the enterprise)…(beyond the enterprise)…

http://www.zurich.ibm.com/security/enterprise-privacy/


IBM e-P3P extends W3C P3PIBM e-P3P extends W3C P3P

PII

P3P: Is a standard, computer readable format for privacy policies

Applies To: Data collection

Mission: Defines privacy policy processes and supports transparency in data collection

P3PeP3P: Implements an enterprise privacy enforcement system to effectively manage privacy

Applies To : Data collection + storage + processing + strategic use

Mission: Enforces E-P3P privacy policies, allows for a transparent auditing, while promising a “provable” P3P statement to customers

IBM e-P3P


1. Adoption of privacy policies2. Notification of privacy policies to

users3. Availability of enforcement and

redress mechanisms 4. Promoting user education and

awareness 5. Use of privacy-enhancing

technologies6. Use and development of

contractual solutions for online transborder data flows

New regulation paradigmNew regulation paradigm

Regulation Self-Regulation

Legislation

Industry Standards or Third Party Verification

Privacy Policies

Enforcement Mechanisms

Codes Actions

2002/58/EU

MMATRUSTe OECD

Use of Privacy-Enhancing Technologies

P3PIBM eP3P






AgendaAgenda


ATL MMM: an open to the ATL MMM: an open to the community projectcommunity project

Collect and process data from mobile Collect and process data from mobile operationsoperations

SMS Interactive TV / Radio

Mobile MARKETING

Mobile Coupons

Business Mobile Messaging1. mobile CRM2. enterprise m-channel


Example: a m-m campaignExample: a m-m campaign

INFORM SEND SMS

SMS REPLY SEND AGAIN

DEVELOPMEN

T2

DESIGN

1

TRACKING

&

REPORTING4

EXECU

TIO

N

3

•Set business objectives•Define success rates•Decide service modules(text-to-win, quiz, poll, coupons etc.)

Build or acquire opt-in lists

•Implement the services modules•Send messages & verify delivery•Collect responses

•Track real time data•Provide response rates


ATL MMEATL MME

Quiz

Multicast

Chat

Vote

Alerts

Opinion

Tracking &

Reporting

Project Design

&Development

Project Mngt

ATL mm gateway

ATL mm platform

ATL studio

Message routing

Mngt of4/5digits numbers

Connection to operators

& mobile gateways

ATL mm permission database

Users en

try

Mo

bile o

perato

rs (S

MS

-C) &

MO

BIL

E G

AT

EW

AY

S

HT

TP

/ SM

PP


How it works?How it works?

ATL mm platform

ATL studio

ATL mm permission database

1. Mobile Marketing2. Mobile Coupons 3. business mobile messaging

1. mobile CRM2. enterprise m-channel

4. SMS Interactive TV / Radio1. SMS / MMS TV2. SMS Radio

Participate in


SMS streams like clickstreamsSMS streams like clickstreams


ArchitectureArchitecture

PROFILESDATA COLLECTION &ORGANIZATION

PRIVACY POLICIES

UPDATE

Profile SUBSET

Third sources

USERS

ATL studio

Quiz

Multicast

Chat

Vote

Alerts

Opinion

ATL mm platform


Element “Project Sheet”Element “Project Sheet”

Project owner (data user)Project owner (data user) Run (or done)Run (or done) Type of ModuleType of Module (Opinion, Vote, (Opinion, Vote, Other… “taylored” moduleOther… “taylored” module)) Type of project Type of project ((mmobile obile mmarketing, Interactive TV/Radioarketing, Interactive TV/Radio, etc., etc.)) ContentContent ( (Information, Interaction, AdvertisingInformation, Interaction, Advertising)) Περιγραφικά στοιχείαΠεριγραφικά στοιχεία

ProjectProject name name Starting dateStarting date Ending dateEnding date Keyword(s)Keyword(s) [Euro2004, Athens2004] [Euro2004, Athens2004] Short number [4160]Short number [4160] Response messageResponse message


Element “Customer Profile”Element “Customer Profile”

Local profileProject 1

Project 3

12

12

12

12

Local profile Project 2

Project 1

Project 2

Local profile Project 3

(Dynamic) Customer profile


An example of Customer ProfileAn example of Customer Profile

self-evolvin

g


ATL MME = “open source” m-P3P ATL MME = “open source” m-P3P

We implement IBM e-P3P in the context of the We implement IBM e-P3P in the context of the mobile businessmobile business and in an and in an “open source”“open source” framework (ATL MME m-P3P)framework (ATL MME m-P3P)

ATL MME contains ATL MME contains A A “customer profile” information filter“customer profile” information filter on collected on collected

data data A A privacy policy architectureprivacy policy architecture that that

o Defines types of PII data collected from customersDefines types of PII data collected from customerso Describes what Describes what operationsoperations should be performed on should be performed on PII PII

datadata,, for which for which purposes,purposes, by which by which data userdata user o States actions that have to be performed States actions that have to be performed (obligations)(obligations)o Explicitly models Explicitly models opt-in & opt-outopt-in & opt-out choices for the customer choices for the customer


ATL mm platform

Call Center /Web Site

(through ATL studio)

ATL mmpermission database

Entry

StructuredData

Third Party(through ATL studio)

P1

P3

P4

P2

soft opt-in

register

Types of PII data Types of PII data (from “data subjects” / customers)(from “data subjects” / customers)


ATL MME m-P3P ATL MME m-P3P implementationimplementation

AdminPII DATA ENTRY

{data-user, project}

Local ProfilesDynamic Profiles

Obligations

Obligations

Project Sheet

Purposes

Operations

ATL studio Who? (data-user)


In detail…In detail…

AdminPII DATA ENTRY

{data-user, project}

Local ProfilesDynamic Profiles

ObligationsObligations

Project Sheet

Purposes

Operations

ATL studio

- send response message- send marketing message

- only read data- write on data- disclose data

- do not operate for “under 14”-erase local profile when receiving “opt-out” SMS

- erase profile if no participation for more than 12 months

Who?


AgendaAgenda






Open issuesOpen issues

Is the “customer profile” a viable “data information filter” Is the “customer profile” a viable “data information filter” or business will act “per project”? (“how much” history or business will act “per project”? (“how much” history will matter?). Is the storage of customer profiles for will matter?). Is the storage of customer profiles for business use a socially acceptable practice?business use a socially acceptable practice?

Are efficiency / privacy issues at the center of attention Are efficiency / privacy issues at the center of attention of mobile service business – who are “small players”? of mobile service business – who are “small players”? (how mature is this industry to operate consistently with (how mature is this industry to operate consistently with rules and standards?)rules and standards?)

Do the customers easier accept to provide data when Do the customers easier accept to provide data when there is a strong (auditable) promise for privacy there is a strong (auditable) promise for privacy protection?protection?

Documents

1 Managing Self-evolving Portfolios of Customer Profiles Petros KAVASSALIS Themis ZAMANI ITS Berlin September 4-7, 2004