Christophet Nash at WebTomorrow about Creating Lifetime Customers ...by Using Machine Learning and Predictive Personalization

Creating Lifetime Customers Using Machine Learning and Predictive PersonalizationWEBTMRRW15 – March 10, 2015

Presented by // Chris Nash @chrisnash

Senior business optimization consultant & Co-author Connect

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What happens in a “web today”

minute?

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Millions of customer experiences

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But often low qualitycustomer experiences

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What aboutthe “web tomorrow”

minute?

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Accurately anticipatethe needs of customers

– in the moment –based on

predictive technologies

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Customers reveal digital preferences – data – as

they make decisions “in the moment”

Customers seek relevancy Brands = experience architects

Brands must create relevant experiences by anticipating next best action

Customer experience – Decision journeys

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Two Predictive Technologies

Predictive Personalization Machine Learning

Recognize in-the-moment behavior and behavior patterns

Big data technology to analyze the past to predict the future

Steve

Fiona

MarkRichard

Jane

Steve

Fiona

MarkRichard

Jane

Steve

Fiona

MarkRichard

Jane

Auto

Home

Life

CommericalBusiness

Extended

Multi

Auto

Home

Life

CommericalBusiness

Extended

Multi

Auto

Home

Life

CommericalBusiness

Extended

Multi

Steve

Fiona

MarkRichard

Jane

Auto

Home

Life

CommericalBusiness

Extended

Multi

Persona Profile Product Profile

In-the-moment, predictive personalization

web

mobile

email

social

apps

commerce

Act on in-the-moment

behavior

Steve

Fiona

MarkRichard

Jane

Auto

Home

Life

CommericalBusiness

Extended

Multi

Profile pattern match Profile pattern match

Single view of individual customer

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Machine Learning Using Customer Experience Data

Unstructured Customer Experience Data Synthesize

Data

Train the System

LearnPredictions

Evaluate & Refine

ProvidePredictive

Data

APIAPI

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What if you combine these two

capabilities?

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API

Predictive Personalization

ML Predictions

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Possibilities

Commerce

Predict the next product to sell based on in-the-moment relevancy and cohort analysis

Online Advertising

Predict the next online ad to display based on in-the-moment relevancy and cohort analysis

Content

Predict the next piece of content and call-to-action to present in the relevant channel

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10 top bank in Russia

Consumer, Private, Commercial, Business banking

Uses predictive personalization to increase sales of consumer loans

Boosted conversion rate for completed consumer loan applications from 4% to 24%

PS Bank

4% to 24%

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Retirement savings fund

2.1 million members; $75B assets

Uses predictive personalization in combination with predictive data to increase member self-service and grow member satisfaction

Boosted use of personalized online self-services conversions by 250%

AustralianSuper

250%

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Tips / Takeaways

Don’t: “ask for marriage on the first date”

Do: understand consumers’ basic drives —“universal human truths”

See: The Ultimate Marketing Machine350 CEOs, CMOs, and agency headssurveys of 10,000-plus marketers from 92 countriesHarvard Business Review JULY–AUGUST 2014

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Tips / Takeaways

Take a phased approached to CX relevancy

..

..

.If-then personalization

Simple data merge

Algorithmpersonalization

Systemic algorithmpersonalization

Machine Learningpersonalization

93% of companies using personalization experience sales increases*Econsultancy 2014

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Optimize

Nurture

Engage

Initiate

Radiate

Align

Lifetime

CustomersAssess your organization’s customer experience maturity

Tips / Takeaways

www.ConnectTheExperience.com

Take simple CXMM assessment

Download first 2 chapters for free