Title of Presentation

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?

Are we really maximizing performance?

Agile and precise marketing done in real-time to deliver the best offers to your customers.

Evolution of Precision Marketing 1995 2005

One size fits all

Marketing segmentation Today Another customer Micro-segments and true 1:1 marketing

Explosion of Marketing Channels Print Digital

In person Social

The Challenge

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

Handling Variants and Constraints Channels

► In-store ► Internet ► Email ► Mobile ► Social media ► Telephone ► Mail

Offers

Products Discounts Rewards

Timing

► Deliver offer to the customer at the moment they are most willing to buy ► Multiple-touch

Objectives

► Acquisitions ► Retention ► Add-on services ► Cross-sell ► Up-sell Regulatory

Constraints

The Imperative: Harness Big Data

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

Effective Large-Scale Campaigns Require Optimization Along Many Dimensions



Millions

of customers     

Thousands

of possible actions

Varying

marketing objectives

Multiple

channels and brands

Hundreds

of inputs

Conflicting

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 with diminishing benefits ► New features needed?

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?

FICO ® Offer Optimizer

A powerful optimization tool built for marketers wanting to increase customer centricity, profitability, and competitive advantage.

Advanced mathematical modeling Optimized solver Built for marketers

Better decisions

Why Would I Use FICO ® Offer Optimizer?

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.

Do You Have 3 or More of These Problems?

      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 16 © 2014 Fair Isaac Corporation. Confidential.

Offer Optimizer Put to Work

Bank Increases Marketing Campaign Effectiveness

Customer

Leading retail bank

Challenge

Deliver personalized offers to 15 million customers across multiple portfolios through diverse channels

Solution

FICO ® Offer Optimizer

Operational Results

Highly relevant and timely offers Better use of marketing funds Demonstrated true customer centricity at individual level

Benefits

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.

Thank You!

Horia Tipi

[email protected]

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

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