Oracle Real-Time Decisions: E-Commerce Optimization at Betfair

1 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted


Session 16847 / Oracle Real-Time Decisions: E-Commerce Optimization at Betfair

Nicolas Bonnet, Sr Director Product Management, Oracle James Knight, Product Manager, Betfair Daniel Taylor, Business Analyst, Betfair

3 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted 3 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 8

THE FOLLOWING IS INTENDED TO OUTLINE OUR GENERAL PRODUCT DIRECTION. IT IS INTENDED FOR INFORMATION PURPOSES ONLY, AND MAY NOT BE INCORPORATED INTO

ANY CONTRACT. IT IS NOT A COMMITMENT TO DELIVER ANY MATERIAL, CODE, OR FUNCTIONALITY, AND SHOULD NOT BE

RELIED UPON IN MAKING PURCHASING DECISION. THE DEVELOPMENT, RELEASE, AND TIMING OF ANY FEATURES OR

FUNCTIONALITY DESCRIBED FOR ORACLE'S PRODUCTS REMAINS AT THE SOLE DISCRETION OF ORACLE.

4

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Agenda

•  On Decision Management •  Oracle RTD Product Overview •  Ecommerce Optimization Use Case at Betfair

5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Confidential – Oracle Restricted Confidential – Oracle Restricted

Oracle Real Time Decisions Closed Loop Transactional Business Intelligence

Arbitra'on

Goals

Rules & Models

Automa'on

•  DECISION MANAGEMENT •  Complete Decision Framework leveraging Data, Rules, Predictive Models •  Closed Loop Business Intelligence & Insight Discovery •  Business Controls supporting Collaboration over End to End Lifecycle

•  DECISION OPTIMIZATION •  Cross-Channel Decision Services for Business Process Optimization •  Adaptive Targeting Automation with Self Learning •  Scalable and Flexible Enterprise Infrastructure

•  ORACLE RTD DELIVERS QUANTIFIABLE RESULTS •  Personalized, Optimized and Context Centric Decisions

•  Cross-Channel Learning & Decisions •  One Single Solution for Multiple Decision Management Use Cases


It’s All About Me

•  Acknowledge me •  Save me time and money •  Reward my loyalty •  Pay attention and make me feel

special

•  Be relevant to my [evolving] needs •  Respect my preferences •  Respect my privacy •  Support me anytime, anywhere

•  Treat me like you know me and my business is important but do not patronize me

•  Treat me consistently across channels

•  Recognize my needs and intentions


Total Economic ImpactTM of Oracle Real-Time Decisions

•  The company •  A financial services provider with more than 20,000 employees and operations across the United States

•  The financial results (risk-adjusted / three years) •  ROI: 986% •  Payback period: 3 months •  Net Present value: $99,711,545 •  Total Benefits : $137,927,504

•  The benefits •  Improved closure rate revenue: $52,406,800 •  Incremental sale price revenue: $41,114,400 •  Post cart abandonment follow-up campaign revenue: $56,400,000 •  Greater customer retention and lifetime value •  Better business intelligence •  Improved customer experiences

Study Conducted by Forrester Consulting, Commissioned by Oracle

Source: “Total Economic Impact of Oracle Real-Time Decisions, a commissioned study conducted by Forrester Consulting on behalf of Oracle, July 2011”


Managing Customer Attention Cross Channel Challenge

Web

Branch

CRM

Call Center

Email

Social Media

Mobile

Yesterday

•  Traditional Channels •  Multi-Channel Experiences

•  Outbound Centric Model

Today

•  New Generation Channels •  Cross-Channel Interactions •  Inbound Centric Model

Get Advice

BI ECM


The “Moment of Impact”

•  Service Processes •  Service Treatments Optimization •  Customer Retention Programs •  Call Center Optimization •  Risk and Fraud Analysis Enhancement

•  Operational Processes •  Maintenance Recommendations •  Operational Process Optimization

RTD in Production •  Marketing Processes •  Interactive Marketing Personalization •  Customer Experience Optimization •  Next Best Action •  A/B and Multivariate Testing •  Content Personalization

•  Sales Processes •  Customer Acquisition Targeting •  Cross Sell/Up Sell •  eMail Targeting and Personalization

Web

Branch Call Center Social Media

Mobile

One Single Platform for Multiple Decision Management Use Cases


Agenda

• On Decision Management • Oracle RTD Product Overview •  Ecommerce Optimization Use Case at Betfair


RTD Enables Adaptive Business Processes Analytic Decisions as a Service

•  Process learns and continuously optimizes in real-time or batch based on closed loop information

•  Analytical decisions for each interaction

•  RTD Recommends with rules & predictive models

•  RTD Learns from each interaction

•  Leverage common data model with real-time and historical data

•  Decisions based on facts, context, predictive insights

Real-Time Closed Loop Self-Learning

Business Process Execution

INFORMANT Process data

ADVISOR Recommendations

Enterprise Information Model OLTP BI Grid

INFORMANT Feedback


Oracle Real-Time Decisions Key Capabilities

Decision Management •  Collaborative environment to define decision management strategies •  Business user controls over decision optimization logic •  Cross-channel customer experience management framework

Learning Engine •  Can be deployed independently from decision engine •  Automatically learn from each interaction and discover important

correlations •  Learning can be analyzed by way of user friendly reports •  Learning can be used to make predictions

Decision Engine •  Combines rules and [automated] predictive models to

define contextual, optimal and personalized decision logic

•  Decision logic is highly scalable and self-adjusts based on company defined performance goals


Agenda

• On Decision Management • Oracle RTD Product Overview •  Ecommerce Optimization Use Case at Betfair

BETFAIR – WHAT DO WE DO? •  Founded by Andrew Black and Ed Wray in 2000, floated last year for

£1.6bn •  Online sports bookmaker where customers bet against each other on our

“Exchange”. Also offer Poker and Casino

Betfair Film

CONFIDENTIAL and not for reproduction without prior written consent. © of the Sporting Exchange Limited. 15

PERSONALISATION STRATEGY To deliver “personalised” communications and interactions to every

customer we have. •  More relevant content means

–  More engaged customers –  Higher communication response –  Increased revenue and product take up –  Decreased churn

•  Other companies report customer marketing ROI increases ranging from 100% to 300% by doing this

•  Email trial –  Tested customer segmentation and predictive models on email channel –  Positive results paved way for personalisation programme.

BETFAIR – SOME OF OUR CHARACTERISTICS AS A BUSINESS

Repeat transaction business •  400k customers per month •  100k of which drive 99% of

revenue and transact >10 days per month

Fluid product inventory •  6000 markets live at one time •  Some markets last less than 5

minutes •  Content and comms fluid also in

line with sporting calendar

Revenue not known at time of purchase •  We only know the revenue when

the match/competition finishes

Huge Customer Diversity •  Customers betting anywhere

between £2 and £1million stakes

SELECTION PROCESS Search for companies and preliminary conversations

RFP sent to 23 potential suppliers

6 Supplier Presentations

Shortlist – 3 Suppliers - Numerous meetings both product and

technical. - Reference site visits Europe and America (6 Betfair staff attended)

REASONS FOR SELECTING RTD

Self Learning Multi Channel Time Aware Business Goal Arbitration

Rules and Modelling Performance Control Group


MARKETS PROJECT •  RTD is a programme of work within Betfair to deliver our personalisation strategy

– Two projects complete others in progress or planned –  Focus of today is on one particular use case – market recommendations – Pre project belief - revenues could be increased by recommending individual users with

markets that they would be interested in – Other objectives of the project

•  test RTD - unique use case due to nature of markets and their various life times •  fully automated solution •  prove performance •  prove integration with other systems


MARKET RECOMMENDATIONS USE CASE

INPUTS

Customer data

Behavioural data - Web

Market information

Relevant content to customer

Oracle RTD

MARKET DECISION

Performance – 300 markets * 8 models = 2,400 decisions per customer in under 100ms

800 markets

Minimum £10,000 Matched

300 markets

Minimum £20

Velocity

RTD Decision

6,000 markets from API

Combined Likelihood

Your Event

Interest

Your Technical Interest

Velocity

In Play Amount Matched

Turning in Play

Sport

Category

Event

RTD knows about you: -  Account data from data warehouse -  Basic site browsing information - Click and Bet information

TARGET AND CONTROL GROUP COMPARISON


0

50

100

150

200

250

300

350

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

%

HIGHLIGHTS •  Controlled roll out •  Throttled traffic •  Control / test groups •  Increased volumes quicker than originally planned •  Seven times more likely to click on relevant

markets than random •  Analytical reporting •  Rapidly deploy logic / model enhancements

DATA AVAILABLE IN RTD


DATA AVAILABLE IN RTD


THE PROJECT

July August September October November

Phase 1

Phase 2

Phase 3

Phase 4

Pilot

Agile methodology used to release business value early and to de-risk the project


Hardware Environments Basic website integration

Customer data integration

Improved website integration Betfair API

integration

RESOURCES

Initial Project

Ongoing

Developers 2 1 RTD Consultants (External) 3 RTD Developers (Internal) 3 QA 1 1 IS 0.5 0.5 BA 1 1 Project Manager 0.5 0.5 Product Manager 0.5 0.5 Statistical Analyst 0.5

RESULTS AND FUTURE PLANS

?

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Oracle Rich Landscape of Predictive Analytics From Statistics to Decision Management & Optimization

Oracle Real Time Decisions Oracle Crystal Ball -‐ Optimization algorithms

Oracle Crystal Ball Forecasting Oracle Essbase & Hyperion Planning

Oracle Data Mining and Text Mining Oracle Real Time Decisions

Oracle Essbase -‐ Advanced Calculations Oracle R and Oracle Data Mining: In-‐database statistical functions


Oracle Real Time Decisions Optimizing Customer Experiences

Business Objectives

Technology Requirements

•  Differentiated, tailored user experiences based on customer specific and interaction data

•  Business intelligence via analytical reports

•  Analytics automation

•  Easy integration with ‘message’ supply chain

•  Scalability & Architecture

•  Accurate, self-learning predictive capabilities

•  Low Total Cost Ownership

•  Flexibility to cope with evolving requirements

•  Easy integration with ‘interaction’ channels

Impressive ROI


Q&A
