Transcript Title of Presentation

Marketing Mix Mayhem
How to Optimize Marketing Decisions and Customer
Personalization in a Churning Marketing Landscape
Horia Tipi
Director, Product Management
FICO
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
How do we expand
without taking on
too much risk?
Can we deal with
complexity and
make decisions in
real time?
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© 2014 Fair Isaac Corporation. Confidential.
Are we really
maximizing
performance?
What offers would
drive loyalty and
maintain profit
margins?
Agile and precise marketing done
in real-time to deliver the best
offers to your customers.
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© 2014 Fair Isaac Corporation. Confidential.
Evolution of Precision Marketing
1995
2005
Today
Another
customer
One
size
fits all
Marketing
segmentation
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© 2014 Fair Isaac Corporation. Confidential.
Micro-segments and
true 1:1 marketing
Explosion of Marketing Channels
Print
Digital
Social
Inperson
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© 2014 Fair Isaac Corporation. Confidential.
The Challenge
Delivering Individual Message to Millions of Customers
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© 2014 Fair Isaac Corporation. Confidential.
And It Doesn’t End There
Hyper-competitive markets
Need to retain the best customers
Diminishing profitability
Changing regulations
Economic uncertainties
Everything changes all the time
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© 2014 Fair Isaac Corporation. Confidential.
Handling Variants and Constraints
Offers
Products
Discounts
► Internet
► Email
► Mobile
► Social
► Deliver
offer to the
customer at the moment
they are most willing
to buy
► Multiple-touch
media
Objectives
Timing
Channels
► In-store
Rewards
► Acquisitions
► Retention
► Add-on
services
► Cross-sell
► Up-sell
► Telephone
► Mail
Regulatory
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© 2014 Fair Isaac Corporation. Confidential.
Constraints
Business
Execution
Budget
The Imperative: Harness Big Data
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© 2014 Fair Isaac Corporation. Confidential.
What Should You Do?
Understand customer preferences
►
Dissect historical and real-time customer data to understand
individual preferences and recommend
more relevant offers
Balance real-word constraints
►
Find best treatment for each customer given real-world constraints
(mailing volume, store locations, budgets)
Execute precision marketing
►
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Execute portfolio-level business strategies with precision at
the individual customer level
© 2014 Fair Isaac Corporation. Confidential.
Effective Large-Scale Campaigns Require Optimization
Along Many Dimensions
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© 2014 Fair Isaac Corporation. Confidential.
Millions of customers
Thousands of possible actions
Varying marketing objectives
Multiple channels and brands
Hundreds of inputs
Conflicting business constraints
What’s in the Market Already
► Predefined,
inflexible templates
► Works
at first but does not adapt to change
► Forces
you to use predefined data formats and systems
► Expensive
► New
features needed?—wait for roadmap to possibly catch up
► Good
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with diminishing benefits
real time (reactive) performance but little analytic smarts
© 2014 Fair Isaac Corporation. Confidential.
Here’s What You Want Your Optimization Solution to Do:
► Criteria
for your marketing optimization:
► How
to best spend the campaign budget?
► How to target customer segments?
► How to manage customer messaging
► Is there a case for increased spend?
► How to best trim spend if challenged?
► How to allocate spend across campaigns and time?
► What do I do about new channels popping up all the time?
► How can I reduce unsubscribes?
► How can I manage continuous change?
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© 2014 Fair Isaac Corporation. Confidential.
FICO® Offer Optimizer
A powerful optimization tool built for marketers wanting to increase
customer centricity, profitability, and competitive advantage.
Advanced
mathematical
modeling
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© 2014 Fair Isaac Corporation. Confidential.
Optimized
solver
Built for
marketers
Better
decisions
Why Would I Use FICO® Offer Optimizer?
1. To accurately capture your true campaign optimization challenges
2. To find the quantifiable optimal solution
3. To automatically learn to further improve campaign outcomes
4. To adapt as your needs evolve
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© 2014 Fair Isaac Corporation. Confidential.
Do You Have 3 or More of These Problems?
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Targeting large numbers of customers (500K or more)
On the path toward customer centricity
Want to increase customer base
Want to provide a better customer experience
You are wasting marketing dollars but can’t tell where
Your campaign requirements are too complex for the average software
© 2014 Fair Isaac Corporation. Confidential.
Offer Optimizer Put to Work
Bank Increases Marketing Campaign Effectiveness
Customer
Challenge
Solution
Leading retail bank
Deliver personalized offers to 15 million
customers across multiple portfolios through
diverse channels
FICO® Offer Optimizer
Operational Results
Highly relevant and timely offers
Better use of marketing funds
Demonstrated true customer
centricity at individual level
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© 2014 Fair Isaac Corporation. Confidential.
Benefits
Increase cross-sell and up-sell
$ Increase ROI
Increase customer loyalty
What’s Next?
Give us your hardest problem
► Share
your existing pain points. Contact us
and we’ll take a sample of your data and
stand up our solution to show you how it
works and how you can benefit.
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© 2014 Fair Isaac Corporation. Confidential.
Thank You!
Horia Tipi
[email protected]
646 267 2306
© 2014 Fair Isaac Corporation. Confidential.
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Learn More at FICO World
Related Sessions
►Making the Best Offer
►How Optimization Helps You Turn Questionable Data…
Products in Solution Center
►FICO®
Offer Optimizer, FICO® Optimization Modeler, FICO® Xpress Optimization Suite
Experts at FICO World
►Matt Stanley ([email protected])
►Horia Tipi ([email protected])
White Papers Online
►Marketing Mythbusting—Six Maxims Get Put to the Test
(http://www.fico.com/en/request_asset/?asset_id=9159)
Blogs
►www.fico.com/blog
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© 2014 Fair Isaac Corporation. Confidential.
Please rate this session online!
Horia Tipi
[email protected]
646 267 2306
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© 2014 Fair Isaac Corporation. Confidential.