Personalize Customer Engagements Through Smarter Analytics & Marketing

Intelligent Customer Engagement™ Suite

Personalising Customer Engagements through Smarter

Analytics & Marketing

Presenter Name: Anant Choubey and Aurelia LeopoldDate: 20th June, 2014

Right Channel, Right Message. Right Now

Company background

• Capillary enables retail marketers and service providers to easily and quickly manage their customer data, gain insights and personalize interactions across multiple channels, driving a significant increase in sales and loyalty

• Cradle-to-grave solution for the entire customer engagement life cycle⁻ Customer data capture & management (mobile, social media, online and in

store)⁻ Deep customer insights served through intuitive interfaces & dashboards⁻ Personalized customer interactions through powerful big data & analytics⁻ Integrates with typical retail, payment & marketing solutions⁻ Integrated platform that’s intuitive, flexible & quickly deployed

• Worldwide leader in cloud-based Customer Engagement Management solutions⁻ Customers: 150+ top brands⁻ Representing 10,000 locations⁻ Who reach 100M shoppers

• Headquartered in Singapore with 350+ employees globally

• Funded by Sequoia Capital, Norwest Venture Partners, Qualcomm Ventures and American Express Ventures

Private and Confidential 6/20/2014

AFRICA

USA

MIDDLE EAST

INDIA

UK

SINGAPORE

AUSTRALIA

Global presence


Awards and Recognitions

Capillary Was Recognized As• Loyalty & CRM agency of the year• Consumer Engagement Agency of the year• Named as a Gartner Cool Vendor• Named by WEF as a scalable, high growth business • Named by HBR as leaders in Reverse Innovation in Product Technology• Named by Forbes as one of 12 hidden gems• Named by Fortune as 40 under 40 business leader’s venture• Named by Inc. as one of Top 100 Innovators in product and technology

Our Clients Won• Best CRM Strategy• Best Use of Consumer Insights/Analytics• Best Use of Loyalty Related Technology• Excellence in Loyalty Marketing• Excellence in Consumer Insights/Market research• Excellence in Data-Driven Marketing• CRM Program of the Year• Best use of Incentives and Rewards• Best Direct Response Campaign • Best Location-based Marketing• Customer insight project of the year


Our solutions are purpose built for retail omni-channel consumer engagement



Asia Pacific Customers on the Lead

54

.7%

52

.2%

47

.5%

47

.6%


Connected Consumers Hold the Power

Consumer at the Heart

Consumer are the decision

makers

This means higher ROI for you


Times Have Changed

Click

Before Today

Buy

Enjoy!

Sign Up

Showrooming

Informed

Social Media

Recommendations from friends

Knows the best price

Shares experiences instantly

Shopping 24X7

Exceptional services

Wants relevant offers

Present at all channels

And More!Customers took the effort to

connect with the brandBrand has the responsibility to

connect with the customer

Social Media

Social Media

Social Media

Social sfb

Social sfb

Very fussy

Very fussy

Very fussy

Very fussy

Very fussy

Very fussy

Very fussy

Very fussy

Very fussy


The Customer – Service Provider Disconnect

Best Products

Best Prices

Available 24X7

More Options

Right Channel

Right Offers

Get More Fans

Get More Followers

Offline + Online

Higher ROI

Latest Technology

Higher registrations

Beat Competition

Get More Loyalty

Future of Personalization is More Than This



Where do You Stand?

Henry

• Male, 28 – 32 yrs• Data packages• Post-paid customer• Preferences

•4G•At least 1GB per month•Frequent traveler; ideal

for roaming plans

• Discount Seeker: No• Preferred Channel for

Transaction: Online• #non customer family members: 3• Average Billing: $350• Segment: New services lover

How many of you know your customers so well?

How many of you can use all of this information to market better?

How many of you can do this at realtime and at any channel?


Before

Your Customer You

Engaging Customers = Difficult Task

Customers took the effort to connect with the brand


Your Customer You

Engaging Customers = Difficult Task

Now

Brand has the responsibility to connect with the customer

Customers willingly provide these data in one way or the other

giving retailers the chance to engage better with them

Customers are leaving data behind –

Retailers need to make most of it

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Data

Insights

Engagement

Communication

POS

Online Order

Call Centres

Spend behaviour

Time of

Purchase

Typical Items

orderedDiscounts

Points

Rewards

Offers/Combos

Email

Mobile

Apps

Social Media

In- store

The Circle to Create Richer Insights, Richer Experiences

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How does Customer Intelligence help?

Customer Centric Intelligence – The Key to Retail Growth

Gather Data – Both instore and online

Segment in accordance to various characteristics

Microsegment to arrive at unique customer profiles

Analyze past behaviour, preferences, likes etc to

predict next steps

Interact with customer with the right message at

the right time

Respond to their actions at realtime

More sales from campaigns

Gather feedback Deliver improved experiences

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Big Data Analytics to Create Richer Insights, Richer Experiences

•PoS •Associates

Offline Data

•Email•Messages•Apps•Demographics•Service Centers•Satisfaction Levels

Additional Data

Predict Headroom

Finding Preferences

Understanding Triggers

How much do customers spend in the industry?

How much do customers spend in a shopping trip?

What items in a typical basket does a customer not buy at DJ?

What do similar customers buy?

What does this customer usually buy?

When is a customer most likely to respond to an offer?

What kind of offers work better at POS vs. offline?

Insights

•Ecommerce•Social Media Interactions

Online DataBig Data Analytics

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Customer Segmentation – The stepping stones of personalization

Identifying separate clusters of similar-behaving customers based on their behavioral and transactional data

23 Customized campaign for customer based on their model

scores

1Targeted promotions

and campaigns deliver higher ROI

and ensure maximum customer

participation

Customer Lifetime Value to discover your top target customers

CLV: Total net income that can be obtained from the customer during their time in the system

a) Effective products –Discounted price plans – Up

selling

Enhance Value

a) High-end services with waivers cross-selling

Ensure Satisfaction

a) Retention campaignsb) Customized offers

Enhance Loyalty

a) Collection of outstanding bills

b) Control on cost drivers

Enhance Profit

HIGH

LOW

LOW HIGH

Likelihood of Stay

CLV

Nurture Maintain

Retain

User Story: Personalized customer engagement

Segment Potential(Customer)

Recommendation

Target Group 121K

Next logical service(3 way concall)

Target Group 222K

Next logical service(3 way concall/voice station)

Target Group 345K

Next logical service(Voice station / caller or hello tunes)

Target Group 468K

Threshold promotion($ off promotion)

Target Group 598K

Threshold promotion(% off promotion)

Target Group 6156K

Welcome back(SMS pack / caller or hello tunes)

For Individual Target Group, Segment Level Analysis is shown in coming slides which can be replicated across all target groups

Analytics allows you to better treat preferred customers

Benefit Up-paid Corporate Post-paid

Image AssociationsPsychologically driven

shift to match change in life style/ stage

Matches the business/

corporate profile. Cues security & stability

Least important. Image

perceived as ‘best deal’

Expected UsageMore consistent as well as

high usage expected

Similar kind of usage, but

now control exercised with

bill details

Possibly higher usage,

but with lower bills than

before

ConvenienceBecomes a fixed monthly

routine without any

hassles of recharging

As easy as possible.

Need for simplest & smoothest transition

Appreciated but not

critical. Should be aligned

to value perceptions

ValueCritical to convey that

decision well taken

Since mostly not/ partly

paid by self, so of least importance

Should meet low monthly

budget. No rentals, better

call value & lower call

rates add to VFM appeal


Customer insights powers personalization

How are smarter campaigns built?

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Customers are Individuals. Campaigns should be too

To boost sales during slow/dull periods

To Increase New CustomerRegistrations and Encourage

Repeat Purchases

To Cross Sell / Upse Encourage Repeat Purchases ll & Push Slow moving

products

To Identify andReward Loyal

Customers

To increase ROI from marketing campaigns

Special occasions and loyalty

Real-time Dashboards give smarter control over your business

• Quick and easy view of the business• Details on overall revenues, CRM, Loyalty

program, and region/store level performance

• Customizable based on time period, views, and relevant KPIs

Delighting customers across the buyer journey – Lifecycle Marketing

To build long-term value by understanding, measuring, analyzing, predicting and enabling the entire customer experience

• Identify best customers similar to current set

• Use customer data more intensively for increasing ARPU per customer

• Combine the telecom operator’s reputation for excellent products & service as a loyalty & referral tool

Customer Acquisition

• Build service & on-boarding programs that improve customer bonding

• Derive customer value & treat customers differently

• Proactive campaigns from customer management program to ensure regular contacts that builds relationships

Customer Retention

• Data analytics-driven, segment-led marketing

• Targeted offers to increase share of telecom spends –VAS, ringtones, triple-play offers etc.

Customer Growth

The Unique Case of TelcosThe role of customer

analytics to foster loyalty and sales growth

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Location Based targeting

•Driving customers to their nearby retail store

•Targeted communication basis customer segment/type

Coalition with retailers

•Providing one redemption platform for all

•Loyalty points of brands to be converted to Telco money and vice versa

Top Customer Program

•Rewarding and engaging top Telco customers

Retail Customer Engagement

•Customer Engagement at Telco Stores

Partnership Opportunities between Telco and Retailers

Typical Use Cases from Marketing

Lets take an example. One of customers We have been provided the following 3 scenarios from the marketing team –

1. Fixed Line customer

– We need to identify customers that are likely to lapse

– Make relevant offers to these customers to retain them as Telco customers

2. IPTV customers

– Understand engagement of customers across all products

– Make relevant offers based on their engagement

3. Broadband Users

– Identify customers that are likely to churn and devise strategies to engage with them better

– Analyze the usage patterns of the customers and devise strategies for upsell