GERÇEK ZAMANLI TEKLİF DÖNEMİ BAŞLADI: SAP RTOM

SAP FORUM İSTANBUL 2014Basit Düşün Fark YaratGERÇEK ZAMANLI TEKLİF DÖNEMİ BAŞLADI: SAP RTOMEngin VolkanSAP Danışmanlık

2© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Contents

The Market Need and Challenges

Detailed Solution Overview

Case Studies and Proof Points

Summary and More Information

NEW MARKETING REALITY:THE DIGITAL MIGRATION

of consumers leverage more than 2 channels56%CROSS CHANNEL INTERACTIONS

spent by people daily on digital media5 hoursSHIFT TO DIGITAL MEDIUM

of CMO’s believe data is the most underutilized asset50%DATA EXPLOSION

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 4

ACROSSMULTIPLE CHANNELSSIMULTANEOUS INTERACTIONS

Social

Email

POS

eCommerce

Web

Mobile

Phone


ONE THAT REQUIRES CROSS CHANNEL ORCHESTRATION

marketers have no clear cross-channel marketing strategy.

57%

SOURCE – ECONSULTANCY AND EXPERIAN


Marketing in the Digital AgeThe Value of Recommendations


REAL TIME MARKETINGReal-time marketing is marketing performed "on-the-fly" to determine an appropriate or optimal approach to a particular customer at a particular time, context and place.

Real time marketing is commonly associated with inbound marketing that seeks the most appropriate next best action and next best offer for a given customer, in contrast to the traditional outbound marketing (or interruption marketing) which aims to acquire appropriate customers for a given 'pre-defined' offer.

The dynamic 'just-in-time' decision making behind a real-time offer aims to exploit a given customer interaction defined by its activity and context


Marketing in the Digital AgeOutbound vs. Inbound Marketing

Outbound Marketing Inbound Marketing

Create static customer group using segmentation

Define customer eligibility and targeting method

One way communication

Distribute offers and messages via Email, SMS, telemarketing, etc.

Ask customer to take action

Two way dialog

Suggest relevant offers during interaction

Capture and analyze customer response and actions to provide more added value

Customer involved and taking actions

Use reports to analyze results and improve future campaigns / segmentation / offers /…

Improve the offering process using online learning


Marketing in the Digital AgeAnalyst Perspective – the value of inbound and event based marketing

CampaignEnterprise-initiated,

marketing-driven

“Intrusive”

3% success

Event-driven

Real timeCustomer-initiated,

relationship-driven“Appropriate”40% success

Customer-triggered,

product as service

“Convenient”

20% success

Gartner studies on insight-driven sales and marketing activities show that promotions (cross- and up-sell; retention offers) on customer-initiated interactions, which leverage advanced analytics to make relevant offers, are 40% more successful.

“

Key findings• Analytics-driven marketing

efforts yield higher success rates

• Inbound customer-initiated interactions are a great opportunity to market

• Increased customer satisfaction rates with intelligent offers


The Real Time Offer Management MarketPains and suggested value

Pain Suggested Value

Need to increase customer wallet share and proftability; need to reduce service costs

o Turns every service interaction into cross/up sell opportunity while maintaining productivity

o Enhances customer’s experience in self-service channels with personalized and relevant offers

Challenging customer loyalty

o Improve cross and up sell to increase customer engagement

o Assesses existing and new risks in real-time and provides personalized retention offers to increase customer’s lifetime value

o Differentiation via event based offers (including location based)

Complex offering and service interactions; Low sales effectiveness

o Empowers customer facing personnel with Next Best Actions

o Streamlines self-service channels

Frequent need to innovate or respond to competition offers with short TTM

o Business users’ tool that enables low cost marketing ideas test and short TTM for new offers launch


Contents






SAP Real Time Offer Management (RTOM)What is in the Box?

< Self-learning multichannel real-time recommendation engine with full APIs

< Offer design environment and simulation tools

< Integration and configuration tools with no coding

< Monitoring tools to monitor and control the real time environment

< Business Analytics – cubes, reports and dashboards

< Connectors and native integration with Interaction Center, Marketing Campaign Management SAP for Utilities, Telco Order Management, and many 3rd party systems

Real Time Recommendation Engine

Offer Management Environment Analytics & self learning

Recommend optimal offers

Create & manage offers portfolio Learn and adapt Measure and provide

insightsRTOM Process

Integration, configuration, simulation and administration tools + full web services API


BusinessUser

4. Optimal Recommendations n Cross/up sell offersn Retention offersn Next Best Actionsn Marketing Messages …

SAP Real Time Offer Management in ActionMake the right offer at the right time – the flow

1. Offers DefinitionWhat - Offer / Message

Who - Target Audience

Where - Channels

When - Context

SAP RTOM

3. Data Sources Real Time Access and Fetchn Previous customer’s responsesn Optional - historical transactions, more attributes

5. Response capture and online learning

2. Triggering Event (typically by consuming app) n Customer ID, Channel, Page, Profile Information…n Type of activity, volume,…

Consumer


RTOM Consumption ExamplePrebuilt integration with SAP Interaction Center

“What and why” for agent support

Integration with product catalog and downstream processes

RTOM Recommendations

Watch a video online https://www.youtube.com/watch?v=QL_Op3_N2-8


RTOM Consumption ExampleCloud for Customer (C4C)

Videohttps://www.youtube.com/watch?v=X0_ycLLdV_4


RTOM Consumption ExampleBanking Self Service Web Channel

RTOM Offers and Next Best ActionsRTOM Offers and Next Best Actions


RTOM Consumption ExampleMobile Apps and E-commerce sites

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Watch a video online


Next Best Offers and Next Best ActionsMain design time parameters

TargetingRecipient profiles / Related Campaigns

Personalized Suitability per profile/campaign

Profiling hypothesis

Triggering events / context

(optional) Downstream and batch activities

Eligibility / PolicyPrerequisites

Validity timeframe

Re-offer policy

Offer ItemsDescription

Links to Products and Activities

Business Priority

Business Goals / Keywords

HELOC offer with no cancelation fee at specific exit points

Customer Eligibility: Resident & Not blocked & Does not already have a line of credit & House owner & above 18

Agent Eligibility: Retail customers agents (offer is not available for Businesses)

1. Recently finished or about to finish paying a mortgage

2. Frequently redraws money from long term savings

3. Customer used a loan simulator on the website

4. Targeted by e-mail campaign but was never contacted

Customer is confirmed, Loan origination, Savings redraw, Mortgage closure

Example: Home Equity Line of Credit Offer


Example - Real-Time Offer Design in SAP Marketing UISetting Rules (used for eligibility, recipient profiles and computed attributes)

Watch a video online https://www.youtube.com/watch?v=B_04JQyAXbA


Real-Time Offer Design in Marketing UI (HELOC)Setting rules with BRF+


- Charles Darwin

It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.

RTOM Recommendation Strategy


RTOM Recommendation StrategyRTOM learns behavior of target segments in specific context

1.Recently finished or about to finish paying a mortgage

2.Frequently redraws money from long term savings

3.Customer used a loan simulator on the website

4.Targeted by product launch e-mail campaign but was not contacted

Customer is confirmed, Loan origination, Savings redraw, Mortgage closure

Target segments Context

TargetingRecipient profiles / Related Campaigns

Personalized Suitability per profile/campaign

Profiling hypothesis

Triggering events / context

(optional) Downstream and batch activities

Eligibility / PolicyPrerequisites

Validity timeframe

Re-offer policy

Offer ItemsDescription

Links to Products and Activities

Business Priority

Business Goals / Keywords


All Customers and PotentialsAll Customers and Potentials

RTOM Recommendation StrategyRecipient Profiles and Hypothesis (supportive attributes)

Eligibility: Resident, not blocked, Does not already have a line of credit, House owner, and above 18

Predictor 1

Predictor 2

Predictor 3 Predictor 3

Customer used a loan calculator on the website

Targeted by product launch e-mail campaign but was not contacted

Recently finished or about to finish paying a mortgage

Max (P1, P2)

Frequently redraws money from long term savings

H2H1

H3

Has more than one account

Has No savings account

Paying mortgage

8 other potential predictors from real

time learning of marketing hypothesis


Optimizationand prioritization

Optimizationand prioritization

RTOM Recommendation StrategySelecting valid offers è Ranking è Response Collection and Modeling è Adaptation

Previously offered

Eligibility TargetingProfiles

Validity

Offer 1Offer 2

Offer N

Arbitration phase Select the relevant offers

based on: subject of the

call, agent skills, eligibility

criteria and more

Optimization phaseOffers are ranked according

to propensity scores, value

to the organization and

goals

Adaptation phaseSelf-learning to adapt

propensity scores and

discover response profiles

Arbitration(policy based)

Optimization(by propensity & value)

Adaptation(response modeling)

Feedback for self learning


Create & manage offers portfolio Learn and adapt Measure and provide

insightsRTOM Process


RTOM Analytics4 Main Categories

1. Offer performance analytics – conversion analysis along offers, profiles, and interaction events over time

2. Customer analytics - response profiles and dynamic profiling analysis

3. Channel analytics - insights about the offer performance in different channels as well as channel specific offering profitability.

4. Agent performance analytics - analysis of the use of RTOM and the success of offering by different agents, as well as the impact on productivity over time.


Create & manage offers portfolio Learn and adapt

Measure and provide insights

RTOM Process


Contents






Measurable Benefits in Real CasesMore Revenues, Loyalty and Business Agility

Short time-to-market for new offers introduction

o 3 hours from a marketing idea to offer deployment

o Offer insights within a day

o E-Commerce interactions (e.g. Mobile, web)

ü 20% increase in digital coupons’ conversions

ü 15% increase in average basket size

ü 10% increase in purchase of suggested products

Rapid ROI by maximizing revenue opportunities

o Agent assisted interactions (e.g. call center)

ü 20-40% end with accepted offer(s)

ü 60%+ lift in number of cross-sells ;

ü 130+% revenue lift


Measurable Benefits in Real CasesTop US Bank – launched 35 cross/up sell & retention offers within 1 month

One of the top 10 largest financial services holding companies in the United States

Business challengesn Complex offering – the bank manages a comprehensive offering environment: banking, brokerage,

insurance, investment, mortgage, trust and payment servicesn Wish to create and manage a multitude of cross line of business offers

(e.g. mortgage + insurance) n All product should be available over all channels

CRM strategy & objectivesn We are always here for you – Service available 24 hours a day, 7 days a week; 24-Hour Bankers are

available 24 hours a day, 7 days a week; etc.n We have the product you need and if not we will create itn Immediate and accurate execution guaranteed

Results with SAPn Agents are doing 50-60% better and improving month to monthn 18% positive response to RTOM offers; additional 12% requested follow upn 3 hours to train new agentsn Up and running in call center within 3 monthsn ROI within 6 months

52%

57%

60%

48%

50%

52%

54%

56%

58%

60%

62%

Jan Feb Mar

Booked Accountsvs. control group


RTOM Proof PointsANZ Bank

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o Several projects in Singapore, China,

Australia and New Zealand

o Integration with Sybase M-Banking

and Online Banking as well as

SAP/legacy front-end and back-end

systems

o Innovative banking and insurance

scenarios, e.g. location based

according to credit card swipe

location, ATM, Branch

First go live within 3 months


§ Real time recommendation based on current shopping basket contents and past purchases

§ A dozen of quantity, discounting and Mix & Match promotion templates

§ Real time identification of promotion status and guidance towards benefits

RTOM Proof PointsAvon (www.avon.ca) live since April 2013

o “Fully Qualified” – you basket contents qualifies you for benefit X

o “Partially Qualified” – you need to add … to your basket in order to get X

o “Reverse” – you have X in your basket that you could have got as benefit

o “Missed” – this promo is active but you don’t have any of its requirements in your basket

§ Real-time analysis of overlapping offers (e.g. X can be part of several promos) and intelligent prioritization of messages to consumer

§ Proved in large volume scenarios with SAP ERP SD, SAP CRM, Vistex and IBM WebSphere-Commerce


RTOM Proof PointsLarge mobile operator

o Mobile operator with 30M+ customers

o Key use-cases

Ø Real time plan upgrade offers to customers

approaching plan limits (see on the right)

Ø Automatic retention treatments to valuable

customers suffering from dropped calls

Ø Real time analysis and personalized automatic

reaction to Social network activity (e.g. complaints,

service needs)

o Deployed on the HANA Enterprise Cloud (HEC)

Before RTOM With RTOM

User gets message that

data speed will be

reduced

Plan upgrade is offered in real time when quota is about to exhaust

RTOM can be live within 8 weeks and 6 man month of effort


Contents






SAP RTOM Value PropositionSolution Strategy and Key Differentiators

Single end-to-end closed loop real time marketing & offer management solution

Patented recommendation technology – provided recommendation personalized and automatically

learns from response

Business user oriented – minimal Time To Market with no IT support

Inherent Multi-channel functionality for self-service and agent assisted channels

Native analytics and dashboards

Fully configurable and extendable via standard API

Unlimited scale-out with guaranteed sub-second response time

Field experience, best practice and solid roadmap


For M

ore

Info

rmat

ion Solution description on sap.com

http://www.sap.com/lines-of-business/marketing/real-time-offer-management/index.epx

Whitepapershttp://www.sap.com/crm

Videos, blogs and more on SAP Community Networkhttp://www.sdn.sap.com

Thank [email protected]

GERÇEK ZAMANLI TEKLİF DÖNEMİ BAŞLADI: SAP RTOM

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