Data-Driven Marketing Roadshow ERN - March 26, 2014

ALL RIGHTS RESERVED © 2014 ERN GLOBAL LTD

March 2014

Brian Eagle-Brown

Head of Sales

Using Payment Transactional Big Data

ERN is a pioneering global big data technology company• Big data transaction analytics platform

• Real-time Insights & analytics

• Real-time marketing capabilities

• Rewards & Loyalty solutions

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Who is ERN?Turning Payment Data Into Marketing Intelligence


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What is Big Data?


“Big data” is high-volume, -velocity and -variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making.

Variety

Velocity

Volume

Cost-Effective &Innovative Forms of Information Processing

EnhancedInsight &DecisionMaking

Source: Gartner

Business Improvement

55ALL RIGHTS RESERVED © 2014 ERN GLOBAL LTD

What is Big Data when related to payments ?

Acquirers: Want to create new revenues & provide value adding services to Merchants

Consumers: Want control, recognition, convenience & better value

Banks: Inability to leverage Big Data & get actionable insights that create value due to legacy systems

Merchants: Want more business & engagement from new & existing customers

?


What is Big Data when related to payments ?

What I might say I’d buy….

What payment data shows I buy….

Aspirational data can be appended to actual transactional behaviour data for a more informed view of Customer


Why bother…… ?

Source: Bain and Co.

• Bain & co survey of 400 large organisations most with $1b+ revenues

• Those companies that aligned people, tools, data and analytics were less than 4% but achieved staggering performance


What is the market opportunity ? Big Data Spend in 2013 by Banks & Retailers was an estimated

$44bn

SaaS Market will grow 19.5% Through To 2016


What are some of the challenges ?

Infrastructure and

internal resource

restraint

Increasing costs and

lack of specific skill

set for Big Data

transformations

Multiple legacy systems;

collection, storage &

processing is difficult

Too much data,

up to 500m

transaction per day

Pay by mobile wallet

Click & Collect

Get Deals & Coupons

Use Mobile Apps Access

My Data

Choose SustainableCustomise my

products

Interact through Social Media

Experiential Shopping

Buy Local


Thoughts on the Opportunities….

Consumers are demanding more!



Mass Communication can often result in a swift consumer reaction



Businesses like to engage in 1:1 conversations with

consumers…..but this isn’t always possible



Big Data with refined analytics can help customers feel engaged on a 1:1 conversations despite volume of customers or number of changing

variables

Weather

Location

Channel

Time

Day of Week

Day of Month

Seasonality

Thoughts on the OpportunitiesEnhanced bank & Merchant Interaction: Integrated data example

Card Data Shopping BagItem Detail

Transactional‘Big Data’

EffectiveTargeting

Relevant Offersto the ‘Right’

consumer

OUTCOMETop of Walletposition for Card `Issuer

Incremental Footfall & Purchases

for Merchant

Relevant individual offers / rewards

for Consumer

Highly relevant offers

Previous transactions

Offer specifics

Offer interaction

Preferences

Other factors

Thoughts on the Opportunities: Combined dataRelevance and convenience are key to customer engagement


looop

Opportunities Through the Value Chain:Using transactional data to gain competitor advantage

Target consumers intelligently in real-time Provides real-time consumer spend analytics Use predictive real time data to increase

footfall transaction volume & average transaction

spend

Merchant

Deeper understanding of consumer behaviour

Encourage transaction use & loyalty New revenue streams & value added

services Provides real-time actionable analytics

Card Issuer

Overcomes legacy systems & provides VAS Incremental data insight & usage Innovation with coupon & loyalty capability

Acquirer


Big Transactional Data : Big Benefits !….

Big Data capability

The ability to leverage transactional data analytics on a specific

Enhanced data analytics

The ability to leverage enhanced analytics from a number of data sources to create targeted actionable insights immediately

Real time, targeted communications

The ability to drive communications via a variety of devices, including targeting by time, location, behaviour or segmentation

Enhanced R&D capability

The ability to innovate using test and learn methods on complementary platforms with new, advanced technologies

Brian Eagle-BrownHead of Sales

M: +44 (0) 777 551 5805

E: [email protected]

ALL RIGHTS RESERVED © 2014 ERN GLOBAL LTD 18

Thank you for listening

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