Home

ACTION INSIGHT

Understand, Visualize and Predict Customer Behavior

Customer Case Study Snap Shot

Customer Interaction Hub Illustrated Demo

Market Leading Analyst Recognition

The CRM “Customer-centricity Chasm”

Home

ACTION INSIGHT

Customer Analytics Maturity Model

• Commence at any stage

• Benefit from a clear roadmap to success

(Underpinned by customer data access, generic BI & reporting tools)

Explore Customers

• Uncover areas of interest and opportunities to act

• Ad hoc, thin-client customer data exploration for the business user

Understand & Predict Behavior

• Predict and define ideal target customer segments

• 3D visual customer data mining & automated modeling

Predict Uplift

• Predict persuadability; eliminate sure things, lost causes, sleeping dogs

• Reduce spend 40% while improving outcome 30-300%

Optimize Contacts

• Analytically match customers with right offer, at right time, via right channel, balanced against business constraints

Real-time Scoring

• Eliminate customer lists, mass-scoring

• Up to the second outbound selection accuracy

Real-time Decisioning

• Inbound contextual RTD

• Adaptive learning

AC

TIO

N

INS

IGH

T

Home

ACTION INSIGHT

The CRM “Customer-centricity Chasm”

Customer Profile

Transaction

Channel

Lines of Business

Customer Preference

DATA CRM TOUCH POINTS

Infuse customer-specific

insight into touch points

INCREMENTAL CRM

Understand past behavior

Predict future needs

“Hindsight” “Foresight”

What | Why | Next | Change

Right message, right time

Dialogue across touch points

Optimize engagement

“Line of sight”

“Hindsight” “Foresight”

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ACTION INSIGHT

4

Please update

your preferences

Last day of Unlimited

Text promo

Ideal promo: Unlimited

Text

Customer completes

survey

We sent you an email

yesterday – do you have

any questions?

Value reinforcement - you saved $X

this month

Documents generated and mailed

Offer acceptance feedback

survey

Thank you for updating

your preferences!

Optimized Customized Customer Interactions

Your Business

Customer

The Results

• Improved customer experience

• Increased customer satisfaction and advocacy

• Increased customer value, wallet share

• Improved customer retention

• Single source for customer preferences

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ACTION INSIGHT

The CRM “Customer-centricity Chasm”

“What customers expect from us” “What we actually have”

Reality

• Product-centric campaigns

• Operationally focused

• Information & channel silos

• Independent business units

• Customer ad fatigue

• Limited capacity for

engagement

Expectation

• We understand them

• We value their business

• We deliver on our promises

• We remember them

• We strive for relevancy

• We are connected

© 2011 Portrait Software - A Pitney Bowes Business Insight Company

Home

ACTION INSIGHT

Home

ACTION INSIGHT

“Inbound”

Channels “Outbound”

Channels

Web

Kiosk / ATM

IVR

Contact Center

Mail

Email

Mobile

INTERACTIVE PROACTIVE

Optimizing Customer Interactions

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ACTION INSIGHT

The Portrait Suite

Explore.

Understand.

Predict.

Optimize.

Orchestrate.

Recommend.

Fulfill.

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ACTION INSIGHT

Immediate increase in customer retention

Reduced marketing costs >DK100,000 PA

Incremental revenue of £48M

Revenue per customer 314% higher

Incremental revenue up 327%

Customer retention up >20%

Reduced marketing costs by >10%

“Immediate increase in renewals”

Customer retention up 300%

Churn decreased by 37.5%

20% reduction in churn

36% increase in churn reduction Products held per

customer up by 50%

Increased revenue by $1.2M per month

ROI from a single campaign

Profitability rose 10%

Uplift doubles customer retention

What’s it Worth?

Financial Services Telecommunications

Insurance

Emerging Markets

Home

ACTION INSIGHT

INSIGHT DATA STRATEGY COMMUNICATION

Mu

lti-

chan

ne

l Co

mm

s M

gmt

Cu

sto

me

r D

ata

Min

ing

Cu

sto

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r Se

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e C

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tact

Ctr

s

Cro

ss-c

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nel

Co

mm

s M

gmt

Pre

dic

tive

An

alyt

ics

& D

ata

Min

ing

Dat

a In

tegr

atio

n T

oo

ls

Dat

a Q

ual

ity

Too

ls

Do

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ut

Info

rmat

ion

Qu

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y

The ONLY vendor on all 5 Magic Quadrants

CCCM

PA/DM

DOCCM

IQ

The ONLY vendor on all 4 Waves

PBBI – Customer Communications Management

MCCM

CDM

CCCM DI

DQ

Gartner

Home

ACTION INSIGHT

Foundation

Dialogue

Forrester’s View of Inbound & Outbound CM

Interaction Optimizer

Customer Analytics

Interaction

Fulfillment Analytic

Insight

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ACTION INSIGHT

• Simple Overview

• Case Study: Retention (Telecommunications Example)

• Case Study: Cross-sell (Financial Services Example)

• Case Study: Cross-sell (Retail Example) Case Study: Retention (Telecommunications Example)

Overview

Case Study: Cross-sell (Financial Services Example)

Case Study: Cross-sell (Retail Example)

Home

ACTION INSIGHT

Portrait Uplift

• Award winning solution – Predict change in

behavior

Predict which customers are Persuadables, while

weeding out Sure Things, Lost Causes and

Sleeping Dogs.

• Spend your marketing funds only where it

will have an impact

Boost impact by 30-300%

Reduce cost by 40%

• Increase analytic bandwidth and throughput

Automate Uplift modeling best practice

Build more accurate uplift models

in a fraction of the time

Benefits

• Eliminate

marketing waste

• Reduce

customer ad-

fatigue, opt-out &

attrition

• Boost return on

marketing

investment

Predict the “persuadables” that will react to your marketing.

Portrait Uplift empowers you to focus your marketing upon only those customers that will positively change behavior as result of your message.

Uplift Segmentation

INSIGHT - PREDICT

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ACTION INSIGHT

“Uplift analysis is a must-consider concept for every organization with significant campaign management activities”.

Gareth Herschel, Gartner, “Predictive Modeling Now more than Ever”, Gartner Customer 360, March 2011

Home

ACTION INSIGHT

Uplift Segmentation for Retention Marketing

Stay Churn

If we do nothing,

customer will:

Churn

Stay

If we target, customer will:

Home

ACTION INSIGHT

Uplift Segmentation for Cross-sell Marketing

Buy Not Buy

If we do nothing,

customer will:

Not Buy

Buy

If we target, customer will:

Home

ACTION INSIGHT

0%

20%

40%

60%

80%

100%

120%

0% 20% 40% 60% 80% 100%

Proportion targeted

Pro

po

rtio

n o

f in

cre

men

tal

eff

ect

Sure Things:

Buy whether you

treat or not

Lost Causes:

Won’t buy whether

you treat or not

1

2A

2B

3

Persuadables:

Only buy if treated

Sleeping Dogs:

Buy unless you treat

2

No impact Positive

impact

Negative

impact

1 2 3

Incremental Impact for Response

Put this money

back into your

marketing budget

17

Home

ACTION INSIGHT

Business Challenge: Targeting for customer churn campaigns but lower campaign costs

The Telenor Group is currently ranked as one of the

world’s largest mobile operators (in terms of

subscriptions). Mobile subscriptions rank at 168

million worldwide with telecom operators in 13

countries.

Portrait Customer analytics assisted Telenor in

delivering next generation targeting for customer

retention (churn) campaigns Removing negative effects

thus decreasing both churn and campaign costs

Benefits

• Traditional targeting reduced churn by

5%, but with significant negative effects

• Uplift model reduced these significantly

• Saving 40% of treatment costs

• Further reducing churn to 6.8%

• Fully automated data build from Teradata

• Sun Solaris server

• 3 m customers, > 300 variables

Without Uplift

With Uplift

Treated Volume

100%

Treated volume reduced by 40%

60%

Reduction in Overall Churn

Without Uplift

With Uplift

5% 6.8%

Results improved

36%

19 %

15 %14 %

12 %

14 % 13 %

15 %14 %

10 %11 %

9 %8 %

11 %10 %

9 %

23 %

19 %

17 %

14 %

18 %

16 %

20 %18 %

11 %

13 %

11 %

9 %

13 %12 %

11 %

0 %

5 %

10 %

15 %

20 %

25 %

jan.

07

feb.

07

mar

.07

apr.0

7

mai.0

7

jun.

07

jul.0

7

aug.07

sep.

07

okt.0

7

nov.

07

des.

07

jan.

08

feb.

08

mar

.08

Konkurrentchurn Eksternchurn

Introduction of

first prediction

model

Introduction of

refined

prediction model

months

annua

l de

fectio

n ra

te

Customer Case Studies

Home

ACTION INSIGHT

Blue indicating high defection rate

Green indicating low defection rate

Mobile subscribers and

defection distributed across

geographic regions in Norway

Interactive Visual Insight

Home

ACTION INSIGHT

Dramatic Impact to Customer Retention

19 %

15 %14 %

12 %

14 % 13 %

15 %14 %

10 %11 %

9 %8 %

11 %10 %

9 %

23 %

19 %

17 %

14 %

18 %

16 %

20 %18 %

11 %

13 %

11 %

9 %

13 %12 %

11 %

0 %

5 %

10 %

15 %

20 %

25 %

jan.

07

feb.

07

mar

.07

apr.0

7

mai.0

7

jun.

07

jul.0

7

aug.07

sep.

07

okt.0

7

nov.

07

des.

07

jan.

08

feb.

08

mar

.08

Konkurrentchurn Eksternchurn

Introduced churn model

months

an

nu

al d

efe

ctio

n r

ate

Home

ACTION INSIGHT

Annual defection rate - Mobile retention campaign

0 % 10 % 20 % 30 % 40 % 50 % 60 %

Reject - renewal

Control group

Yes - renewal 3.5 %

33.0 %

51.2 %

• Can we predict “save-ability” rather than churn risk?

Typical Telco Retention Campaign Results

Home

ACTION INSIGHT

Uplift Business Case: a Double-win

Home

ACTION INSIGHT

Dramatic Impact to Customer Retention

19 %

15 %14 %

12 %

14 % 13 %

15 %14 %

10 %11 %

9 %8 %

11 %10 %

9 %

23 %

19 %

17 %

14 %

18 %

16 %

20 %18 %

11 %

13 %

11 %

9 %

13 %12 %

11 %

0 %

5 %

10 %

15 %

20 %

25 %

jan.

07

feb.

07

mar

.07

apr.0

7

mai.0

7

jun.

07

jul.0

7

aug.07

sep.

07

okt.0

7

nov.07

des.07

jan.

08

feb.

08

mar

.08

Konkurrentchurn Eksternchurn

Introduced churn model

months

an

nu

al d

efe

ctio

n r

ate

Introduced Uplift model

Home

ACTION INSIGHT

Business Challenge: Inability to target the customer with the most relevant message

U.S. Bancorp (NYSE: USB), with $266 billion in assets, is

the parent company of U.S. Bank, the 6th largest

commercial bank in the United States.

US Bank engaged Portrait Software and its team of experts

to produce and trial an Uplift model that had the ability to

generate data models which would lead to the incremental

performance and improved customer experience that US

Bank was striving to achieve.

Benefits Incremental revenue increased 327%

>$500K incremental revenue per campaign

Reduced baseline cost from lower volume

189% increase in incremental response by

avoiding negative effects (downlift)

Campaign ROI increased from 75% to 400%

in 5 years

Increased incremental cross-sell revenue by

more than 300%

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

1000%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

Ro

I

Net

Inco

me

Decile by uplift score

Customer Case Studies

Home

ACTION INSIGHT

Business Challenge: Find more cost-effective ways to acquire new DDA customers using direct mail

U.S. Bancorp (NYSE: USB), with $266 billion in assets, is

the parent company of U.S. Bank, the 6th largest

commercial bank in the United States.

US Bank use direct mail to entire postal routes to acquire

new DDA customers, but low response rates and lift versus

control made even their best targeting models unprofitable.

Portrait Uplift delivered more effective targeting models using

existing data, and achieved campaign profitability by

enhancing with new location-based attributes such as local

product penetration rates and nearest branch drive time.

Benefits Turned around campaign from loss to profit

91% increase in incremental revenue

Generate additional $300K per campaign

Can either reduce volume with same net adds,

or achieve more net new DDAs with same volume

Incre

menta

l R

evenue (

$’0

00s)

Pre

vio

us

ch

am

pio

n

Lo

ca

tio

n-e

nh

an

ce

d

Up

lift

Mo

de

l

Po

rtra

it U

pli

ft

Mo

de

l

Break-even

+41%

+91%

: Location Enhanced

Highlights: Location-data Integration

Home

ACTION INSIGHT

Business Challenge: Improve incremental revenue from monthly consumer catalog mailings

Fortune 50 company with $60B+ annual revenues

that sells about 140K PCs / day. It has nearly 2B

customer interactions per year, including about 15M

direct mail catalogs per month.

Portrait was challenged to develop an Uplift model to

increase the incremental revenue delivered by monthly

catalog mailings compared to existing response and

value based targeting.

Benefits Increased revenue by $1.2M/month at existing mailing

volumes, or $2.5M/month with more focused targeting

Validated in blind trial and now in market, with software

and services hosted by this company’s MSP

Demonstrated applicability to individualized email

versioning, with $250K additional revenue in a small test

Uplift model delivers

$2.5M more revenue

($500K more profit)

Customer Case Study: Uplift in Retail

26

Home

ACTION INSIGHT

Example reduced monthly mailing volume

Uplift model delivers incremental lift by 88% over existing model

Example Reduced Targeting ~30% of mailable universe

In-house Model

Home

ACTION INSIGHT

August Mailing Results

August Uplift Results

0%

50%

100%

150%

200%

250%

300%

1 2 3 4 5Quintile

Incr

emen

tal

Re

ven

ue

In

dex

The actual mailing for the Development audience produced $612K incremental

revenue at full volumes, but would have done over $1.3M at the recommended

40%, and over $3.1M over no mail

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ACTION INSIGHT

Portrait Optimizer

Benefits

• Optimize

marketing ROI

• Eliminate

marketing waste

• Boost relevancy

• Reduce

customer ad-

fatigue &

opt-out

Allocate your marketing for maximum impact & mutual benefit.

• Analytically weighs your business’ constraints vs. expected benefit

to determine the right mix of offers & channels for individual

customers

• Improves customer-centricity while enforcing

constraints, and improving financial outcome

Constraints include eligibility, quantity & value

Considers preferences, propensity & persuadability

• Flexible framework

Optimize offers, message, channel, product, incentive,

time frame and more

• Dual interface

Foster alignment across marketers and analyst teams

Portrait Optimizer is a contact optimization solution that can optimally allocate your marketing spend where it will have the greatest impact, across campaigns and customers, for utmost ROI.

INSIGHT - OPTIMIZE

Achieve Contact Optimization Best Practice

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ACTION INSIGHT

How does Offer Optimization Work?

For Each Offer

For Each Customer

THIS GOES IN

• The right

offers…

• Allocated to the

right

customers…

• To maximize

overall impact.

… while satisfying

all the constraints.

THIS COMES

OUT

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ACTION INSIGHT

Highlights: Contact Optimization

• Maximize return from direct marketing with business constraints

Eligibility, quantity and financial constraints

Includes customer preferences, propensities and “persuadability”

Increases customer-centricity

• Broad optimization framework

Optimizes offers, message, channel, product,

incentive, time-frame

• Seamless integration with campaign planning

Marketer view (Portrait Dialogue)

Analyst view (Portrait Customer Analytics)

Portrait and Microsoft Dynamics CRM

Infusing Customer-centric Insight

into Microsoft Dynamics CRM

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ACTION INSIGHT

Dynamics CRM – Interaction History

3

3

Home

ACTION INSIGHT

Outbound Messages

Received by

individual contacts

sent via Portrait Dialogue

Home

ACTION INSIGHT

Real-time next-best-offer

recommendations are made as

determined by rules & models

built in Interaction

Optimizer

The history of the Real-

time next-best-offer

recommendations made to

the Contact are listed for

the Rep’s reference

Home

ACTION INSIGHT

Once presented to the Contact,

the Rep can assign a disposition

of Accept, Decline, or NoAction. The

Rep can also view the details of the

Campaign as set-up in CRM

Home

ACTION INSIGHT

Infuse Customer-centricity into Dynamics CRM

Made intelligent

Using your own data

The applications

you use today

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ACTION INSIGHT

Dynamics CRM and PCM - Architecture

Overview

Portrait

Dialogue

CRM DB (Accounts, Contacts, Prospects)

Core CRM

Create

Task

Create

Event

CORE CRM

Real-time

Campaign

History

SharePoint Report Center Branch

Branch

Branch

G

D

C B

A

Slide 38