Digesting Multi-channel Data

To Create Value For Your

Business & Customers

Ned Kumar Senior Strategic Marketing Fellow,

FedEx Services

September 2011

2

About Me

Senior Marketing Advisor & SEO Strategist for FedEx Services with over 18 years of

analytics experience.

Prior job in Academics: Teaching Information Systems and Business Strategy in a B-

school

Diversified Background – Engineering, International Business, AI & Machine Learning,

Cognitive Psychology, Data Visualization and Modeling.

Current focus – Social Networks, Search Optimization, Interactive Marketing and

application of analytics to enhance customer experience, improve loyalty and leverage

synergy between channel interactions

3

4

About FedEx Corp (NYSE: FDX)

Provides customers and businesses worldwide with a broad portfolio of transportation, e-

commerce and business services.

Annual revenues of $40 billion and consistently ranked among the world's most admired

and trusted employers.

Fedex.com - Over 23 million unique visitors monthly; more than 6 million package tracking

requests daily and 19.5 million packages shipped via FedEx Ship Manager monthly.

Numerous Awards – FedEx named a “Best Place to Work in IT” by Computerworld Magazine (2011) – Tenth time in 11years

– Ranking in the top 100 on InformationWeek 500 (2010) – top technology innovators

– FORTUNE magazine: No. 8 among "World's Most Admired Companies" (2011)

5

Q: “How can I differentiate my company in the

marketplace?”

“Why do you want to be different? We are swimming in

an overabundance of products and services. ‘Different’

is no longer a differentiator. What is? Creating an

authentic relationship with your customers.” (Source: BusinessWeek (May 28, 2008), Viewpoint by Sohrab Vossoughi, founder of Ziba Design)

Relationship with your customers is key …

Why we need to move beyond just hoarding data….

6

...and start leveraging analytics, BI, & other processes

… and Relationships are not build on uni-dimensional interactions.

7

A Framework…

C

O

R

P

S

T

R

A

T

E

G

Y

A

N

A

L

Y

T

I

C

S

CX&E Strategy

Channel Strategy

Segment Strategy

Product Strategy

Comp Intel

B

R

A

N

D

Tech Support

B

R

A

N

D

8

Challenge: Multiple Customer Definitions

SALES National Acct

MARKETING Account Number

CUST SERVICE Name/Tel Nbr

WEB Visitor id

RETAIL Email/Acct Nbr

AUTOMATION Meter Number

Who is the

customer

?

9

Customer

X

Interactions

X

Channels

X

Offers

HELP!! I

don’t know

where to

begin and

end.

Challenge: Too much information

10

Challenge: Sub-optimal Experience

Sep1, 2010 Interactive Marketing

engine on fedex.com

Disjointed and confusing experience

Am I in the right place?

Where do I go from here?

How do I get back to where I started?

– Inconsistent look, content, architecture

and user flows

– One-off sites and greater fedex.com

content not linked

– Redundant copy and actions

Static experience

– Customers don’t receive dynamic and

relevant content

11

Customer FUSION enabled us to create a common master data set to support our multi-

channel and cross-channel efforts towards providing our customers with a better

experience

Global Owner

Country Owner

Customer Location

Account Number

Visitor id

Individual id

Email id

Meter Number

SALES

AUTOMATION ONLINE

RETAIL MARKETING

CUST SERVICE

Solution – Customer Fusion

12

Who

Where

What

When

Identify the Customer involved in the interaction

• Customer Account Information / Visitor id

• Contact Information

• Address, etc

Identify the FedEx Touch point

• Operating Company (e.g. FXE, FXG, FXF, FXK)

• Functional Area (e.g. Claims Processing, Marketing)

• Channel (Web, Sales, Direct Mail, Sales)

Capture Information about the Interaction

• Reason for call (e.g. claim filed)

• Interaction specific information (e.g. claim amount)

• Interaction outcome (e.g. claim rejected by FedEx)

Capture Date and Time of the Interaction

CIH Interaction Framework

did FedEx

interact with?

did the interaction

take place?

was the interaction

about and what was

the outcome?

did the interaction

take place?

The Solution – Customer Interaction History

CIH provides a holistic view of customers’ interactions with FedEx across the

Enterprise, thus giving visibility into channel preferences, channel spend etc.

13

The Solution – Multiple Contact Database

The Multiple Contact Database allowed the identification of unique

individuals that interact with FedEx at any level, channel, or touchpoint.

CHEERS Contact

Fred Rogers

Sales Contact

Claudia Garbo Complaints

Ginger Asta

Int’l Shipper

Dolly Sia

Box Shipper

Dicky Moe

Domestic

Shipper

Erin Banerjee

Web

Contacts

Peter

Shark

Consignee Shari Lee Letter Shipper

Jan Grouper

Meter Contact

Donna Hue

Primary Contact

John Doe

PRE MCD World

Acct No: 123456789 = A B Company =

MCD World

A B Company =

HIERARCHY TREE:

Global Duns#

Ultimate duns#

HQ duns#, Parent duns#, National Account#

Address link

Business link

Account#

Individual link

14

Solution – Interactive Marketing Initiative

“Creating an infrastructure that applies predictive and statistical

techniques to tailor online experiences to meet the needs of individual

visitors or visitor segments”

15

Synchronize efforts across channels and marketing organizations.

Email Web Analytics SEO/SEM

Social Media Central Hub Web Interaction

Optimization

Content Creation Ad Serving A/B & Multi-varied

Testing

Strategy, process, analysis, campaign management, coordination, and cross channel integration.

Analyze website activity. Develop event detection and triggers, maintain interaction history.

Execute transactional, acquisition, and retention email campaigns.

Engage with customers in dialogue, serve offers, and generate sales leads.

Develop most relevant, appealing, and dynamic content.

Deliver ads to publishers, manage targeted ad trafficking.

Optimize content. Buy and optimize keyword ads.

Deliver customized offers to targeted audiences based on user behavior.

Test page layout and user flows, offer and creative combinations for highest conversion rate.

16

…so that the right message and experience reaches the

right audience at the right time and at the right place.

Shipping to Sydney

Relevant messaging to 1st

time visitors. MVT creative.

Customer location is geo-

specific

Links, content tied to previous behavior or business rules and

tested via MVT

Business rules drive promotions (e.g. promote

premium services if tracking Home Delivery)

Keyword searches and/or email lead to

personalized image/text pages

Personalized welcome and

Loyalty program status

User specific messaging behind login

Micro-segment based messaging that is

relevant to that audience

Non-l

ogged in h

om

epage L

ogged in

hom

epage

17

A single source of master data to support cross-

channel interactions

18

Marketing

Retail

Cust Service

Sales

Web

Couriers

Tech Support

Automation

- Number of visits

- Number of visitors

- Session duration

- Number of page views

- Conversion rate

- Number of registrations

- Number of visits

- Number of page views

- Industry

- Number of mktg contacts

- life-cycle stage

- Number of sales calls

- RFM cell

Channel

Specific

- Channel Specific

- Firmographics

- Seasonality

- Life-cycle

- RFM

- Transactional

Data that could be leveraged to create a rich

customer profile and cross-channel metrics

19

The Analytics

“You cannot improve one thing by 1000% but you

can improve 1000 little things by 1%” - Jan Carlson

20

Implementing the right BI tools

• Having BI tools is not enough – it has to be implemented on top of a solid data management infrastructure if one is seeking to gain competitive advantage using analytics. A couple of things to keep in mind:

• “Garbage in, Garbage out” – Even with the best tools, there has to be a process in place to ensure data quality and Master Data Management.

• An efficient ETL process and automated report distribution to reduce FTE overheads.

• Implement tools suited to your needs & analytical maturity

• Are you looking for a complete BI solution?

• Are you looking at a standalone or something that connects to multiple databases?

• What is the size of your datafeeds and how scalable do you want the tools to be?

• How critical is it to have a state-of-the-art reporting module?

21

Sales

Data

Analyst Super Ninja – Great on paper but not practical

• It is better to start out with understanding a couple of key channel interactions of your customers and then expand that understanding to other channels.

22

- Do I have the expertise?

- What is the sample size?

- Are there lots of missing

data?

- Is the data heavily skewed?

- Do I need to look at absolute

impacts?

- Is there a need to use latent

constructs?

Many Paths to Extracting Insights or the 1000 little things

you can improve by 1%…

23

Rules Based Clustering Methods

1

n

Segmentation Methodology

Nu

mb

er

of

Ch

an

nels

(D

ata

so

urc

es)

Web /

Rules

Based

Multichannel /

Statistical

clustering

methods

Push the limits on Segmentation

24

• Example - Frequency of Visits X Frequency of Shipments

The Simple 2D Matrix

Frequency of Shipments

Fre

qu

en

cy o

f V

isit

Note: The numbers are fabricated for confidentiality reasons & are for illustrative purposes only

25

Deep-dive on the 2D

Note: The numbers are fabricated for confidentiality reasons & are for illustrative purposes only

26

Segmenting Based on Decision Trees

27

Zip Segmentation & Behavioral Segmentation –

Targeting Anonymous Users & Customization

Real time targeting based on session specific customer behavior on fedex.com

Targeting based on integrated online/offline campaigns

Targeting based on fedex.com login account customer profile

Anonymous targeting based on zip profile

FedEx Customer – Zip Profile

Lifetime Value

Integration

Firmographics Mode Preference

Seasonality

Product Affinity

Tender Preference

FDX Relationship

Responsiveness Commitment

Cluster

Cross-sell and up-sell opportunity

FedEx Customer – Online Behavior Profile

# of visits

Session duration

# of page views

Time between visits

# of content views

# of conversions

Brwsr/Lang/Speed

New/Ret. customers

28

Automation Segmentation - Uncovering Cross-sell/Up-

sell Opportunities

29

Profitability

Weighted

Score

Automation %

Weighted

Score

Claims and $ per 100

shipments

Weighted

Score

Calls per 100

shipments

Weighted

Score

LTV

etc...

Weighted

Score

Customer Value

Contact

Frequency Content of

Message

Call

Cycle

Business

Rules for Both

Inbound and

Outbound

Communication

Value Segmentation – Driving Contact Frequency &

Message Content

30

• Identification of events and/or interactions that occur together.

• Can do it with a single channel but multi channel analysis makes it more powerful.

• A creditable rule has a large confidence factor, a large level of support, and a value of lift greater than 1. Rules having a high level of confidence but little support should be interpreted with caution.

Web Claims Cust

Service

Total Sessions = 5,000,000

Web Claims = 1,000,000

Customer Service = 250,000

Web Claims and Customer Service = 100,000

Rule: If a visitor viewed the online claims page, then 10% of the time they also make a call to the

customer service.

Confidence: 100,000/1,000,000 = 10%

Support: 100,000/5,000,000 = 2%

Expected Confidence: 250,000/5,000,000 = 5%

Lift= Confidence / Expected Confidence = 2

Transaction Table

Evaluation Criteria

Identify Affinities using Association Analysis

31

Segment 1

Segment 4

Segment 3

Segment 2

Path Analysis - What are the visitors looking at?

32

Right Hand of Rule = Label

Left Hand of Rule = Mktg15%Disc

Confidence(%) = 78.97

There is a 78.87% confidence that visitors who got touched by the 15%

discount Marketing Campaign will create a label online.

Path Analysis – Are your efforts working?

33

Customer

Experience

Employee

Loyalty

Brand

Value

Proposition (Pricing, Product

Offering, Etc.)

Customer

Loyalty

Financials (Market Share, Revenue,

Profitability, etc.)

By understanding

the relationships

We can move

the needles

higher on our

Corporate

“Dials”

Individual Loyalty Drivers Major Drivers Loyalty Financials

Linkage Modeling – A technique to understanding

Relationships, and identifying Loyalty drivers

34

Survey Data

Linkage Modeling – The Customer Loyalty Model

Overall

Quality

Convenience

Customer

Loyalty

Perceptions

of

FedEx

Overall

Value

Quick

Problem

Resolution

Manage

Interactions

Overall

Shipping

Easy

Selection

Problem

Resolution

Areas

Account

Management

Overall

Invoice Invoicing

Areas

Overall

Delivery Delivery

Areas

Account

Initiation

Price

Shipping

Areas

Partnership

35

In Conclusion – Execution of foundational initiatives

combined with analytics have delivered significant

improvements across the board

Improved retention and penetration rates for Small Business Customers

Detailed life-cycle analysis at various levels – customer, facility, products

Click through Rate (CTR) on marketing campaigns ~425X higher than pre-IM state

Search traffic and ROAS improved significantly month-over-month

Ability to test possible links between face-to-face and digital interfaces as effective drivers

of customer behavior (customer service, chat, digital messaging linkages)

Cross-marketing of product and services across Opcos.

Creation of a Marketing ecosystem that integrates data architecture, technology systems,

and tools to synchronize messages across channels and touch points.

36

THANK YOU

Ned Kumar (ned.kumar@gmail.com)