Final_Epsilon LIMRA presentation_102416

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Source: Bain Digital Insurer of the Future Benchmarking, 2014–2015

“Insurers expect an

increase in the use

of Big Data across

all functions”

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Source LIMRA: Big Data Analytics in Financial Services 2016

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“nearly surveyed

are exploring use of big

data analytics in customer

experience, underwriting,

product development, and

actuarial areas.”

50% of

companies

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Chris Campbell

CNO Financial

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Source LIMRA: Big Data Analytics in Financial Services 2016

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“The most active

area for big data

analytics is

marketing.”

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Source LIMRA: Big Data Analytics in Financial Services 2016

with the right mix of

technical and analytical

skills with good

communication and

business skills.”

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“Shortage of

analytical talent

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Carl Madaffari

Epsilon

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Source: Samantha Chow, Aite Group

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The with

which analytics is used

along the insurance value

chain

it is being used

intensity

does not mean

successfully or

effectively.

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Source: Forrester April 2016

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of marketers are

to help

achieve their goals.

63% prioritizing the

implementation of

technology

investments

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Dave Edington

Epsilon

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Source: Forrester April 2016

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of businesses

consider improving the

72%

customer experience

a top priority.

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Christopher Campbell, SVP Marketing & Communication, CNO Financial

Carl Madaffari, SVP Innovation and Marketing Technology, Epsilon

David Edington, SVP Industry Strategist, Epsilon

From historic to batch to streaming, where is your firm on the data continuum? There is an abundance

of real-time data that can be used to anticipate consumer needs and engage them with more

meaningful, relevant, and helpful experiences. What steps can you take to accelerate your firm’s data

and analytics maturity? This session will highlight how organizations can fully leverage the abundant

data assets available and showcase examples of what this can look like. 11

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Chris Campbell

CNO Financial

Carl Madaffari

Epsilon

Dave Edington

Epsilon

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Data, analytics & marketing maturity model

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relevancy >>>

so

ph

istica

tio

n >

>>

“your intent”

“their intent”

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Context

15

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Focused on middle-income

Americans, near

and in retirement

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The struggle to evolve customer experience

Common

barriers

• Data prevents single

view of the customer

• Lack of clarity on which

elements of CX are most

critical to improve

• Limited insights into

customers’ true needs –

including needs they are

not yet aware of

• Lack of customer

feedback – or a culture

that values it

• Organizational siloes;

different teams

responsible for

different channels

• CX is overwhelming

compared to other

initiatives

• Lack of team members with

the right skills, passion

• Budget limitations

• Legacy systems limit

ability to evolve the

experience (particularly

via digital channels)

• The marketers who “own”

the CX are not tech experts

• Concerns about privacy,

security

• Data not fully captured on

how customers are currently

engaging, and where

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Shifting CXO mindset

“We’re not going to war with cars, we’re going to

war with how we attract people to our brands.”

John Tague, CEO at Hertz, July 2015

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Data, analytics & marketing maturity model

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Default push

marketing: Program-centric

(brand, channel)

messaging

relevancy >>>

so

ph

istica

tio

n >

>>

“your intent”

“their intent”

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Push

Focus Product

Marketing Batch and blast marketing

Message Single message

Channel Single channel

Analytics Foundational

Technology No CRM, disconnected tools

Depth of customer connection

Level of CRM maturity

Marketing maturity building blocks

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Excellence in DM, DRTV, and some print –

In 2010 we dropped over

30 million pieces, as one of

the largest health insurance

mailers in the country.

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Pretty good models

22

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Declining response rates

New phone patterns

More digital interaction

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Excellence in DM, DRTV, and some print –

no segmentation, no mix, no digital

In 2010 we dropped over

30 million pieces, as one of

the largest health insurance

mailers in the country.

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Data, analytics & marketing maturity model

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relevancy >>>

so

ph

istica

tio

n >

>>

“your intent”

“their intent”

Default push

marketing: Program-centric

(brand, channel)

messaging

Segment-driven

targeting: Varying message by

targeting ‘like’ groups

of customers

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• Long-tailed contracts

• Strong incumbent relationship

• Price, hidden costs; large vetting and contingency process

• Organizational priorities.

- 13 “planes in the air” competing for capital and attention

• Business model

- Three separate business presidents with own, unique needs

• Strong desire to maintain / protect current activities

26

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To grow, we needed to become more

and

in reaching our customers.

targeted,

faster

27

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New Segmentation Model

July 2015

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Legacy Marketing

Technology Platforms –

over 40

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Marketing technology pillars

Recognition

& reach

Brand

experience

Analytics

& insight

Marketing

operations

ID & profile

Know your

customers through

their lifestyles,

attitudes and

behaviors, and

create the most

complete

individual profile

Find and

communicate with

those customers

where they are

engaging today

Engage them with

personalized

experiences

based on what

you know and

what you are

learning real-time

Track the impact

of those

experiences to

optimize your

message or to

adjust for changes

in market

conditions

Assemble a

team that can

align activities

against business

objectives and

execute

flawlessly

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Proposed Wellspring Solution

Omnichannel

campaign management

Distributed

Marketing

8

Lead / target

management

Data Management /

Business Rules Engine

2

Wellspring Solution Architecture

CNO Sources

and Systems

Channels Users

Direct mail

Email

Web

Display

Social

Mobile

Call center

BI / analytics

1

Fusion

Identity Management

/ CDI / Online

Onboarding

3

Analytic Environment

6

Marketing DB

Environment

5

Platform Partners

For more than three and a half decades, Oracle has been the leader in database software. And as it has further developed technologies and acquired best-in-class companies over the years, that leadership has expanded to the entire technology stack, from servers and storage, to database and middleware, through applications and into the cloud.

IBM Netezza high-performance data warehouse appliances have revolutionized how organizations approach data warehousing and analytics. Engineered from the ground up for analysis of large data volumes, these appliances are purpose-built to make advanced analytics simpler, faster, and more accessible. They offer a complete solution that integrates database, advanced analytics, server, and storage together to deliver the performance, value, and simplicity that organizations need to handle their rapidly expanding data.

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments, and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services, and IT infrastructure to solve customer problems.

Tibco's Service Oriented Architecture (SOA) solutions help organizations migrate to an infrastructure composed of services that can be assembled, orchestrated, and re-used. Enterprise-scale SOA comes together when you create services from new business logic and wrap existing legacy assets to expose them as services.

Business Integration – Builds a common framework for integrating incompatible and distributed systems to tie together applications and web services.

External Connectivity – Manages the secure execution of transactions outside of the firewall and over the internet.

Messaging – Manages the real-time flow of event-driven information across networks.

[x+1] has helped marketers connect with consumers in more meaningful, actionable ways, delivering content and offers where they’re most relevant. [x+1] can help brands, agencies, and media companies determine the most valuable customer attributes (those characteristics that indicate who is most likely to respond favorably) and then interact with those people when and where they are online. [x+1]’s Predictive Optimization Engine (POE™) is at the heart of a product set (Media+1, Site+1, and Landing Page+1), which enable automated, real-

BI / Analytic Tools 7

Application Software Partners

Business Objects, an SAP company, transforms the way the world works by connecting people, information and businesses. With open, heterogeneous applications in the areas of governance, risk and compliance; enterprise performance management; and business intelligence, Business Objects enables organizations of all sizes worldwide to close the gap between business strategy and execution. Together with a strong and diverse partner network, Business Objects allows customers to optimize business performance across all major industries including banking, retail, consumer-packaged goods and public sector. Business Objects is committed to helping customers turn raw data into actionable decisions, regardless of their underlying database, operating system, applications or IT system.

Cognos, an IBM company, is the world leader in business intelligence and performance management solutions. It provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.

Unica, an IBM company, has been a strategic partner of Epsilon since 2002. Unica’s award-winning marketing suite is a comprehensive marketing automation platform that assists marketers with complex campaign management, marketing resource management, and analysis functions. Epsilon routinely integrates Unica Enterprise applications as part of the overall direct marketing platforms we host and manage on behalf of our clients. Epsilon has implemented and hosted Unica Campaign for more clients than any other marketing service provider.

Adobe Neolane Campaign provides conversational marketing technology that empowers organizations to build and sustain one-to-one lifetime dialogues, dramatically increasing revenue and marketing efficiency. Born digital, with best-in-class email and inbound-outbound channel fusion capabilities architected into a single code-based platform, marketers achieve results in record time. Adobe Neolane Campaign is easy to use for both power and casual users, but powerful enough to drive the most sophisticated marketing strategies. Future-proof, Adobe Neolane Campaign has a track record of enabling its customers to adapt to new customer engagement challenges and exploit opportunities more quickly than their competition.

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than

Conductor

Campaign

Management

Application

9

Digital Media

Targeting / Analytics

Application Software Partners

Business Objects, an SAP company, transforms the way the world works by connecting people, information and businesses. With open, heterogeneous applications in the areas of governance, risk and compliance; enterprise performance management; and business intelligence, Business Objects enables organizations of all sizes worldwide to close the gap between business strategy and execution. Together with a strong and diverse partner network, Business Objects allows customers to optimize business performance across all major industries including banking, retail, consumer-packaged goods and public sector. Business Objects is committed to helping customers turn raw data into actionable decisions, regardless of their underlying database, operating system, applications or IT system.

Cognos, an IBM company, is the world leader in business intelligence and performance management solutions. It provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.

Unica, an IBM company, has been a strategic partner of Epsilon since 2002. Unica’s award-winning marketing suite is a comprehensive marketing automation platform that assists marketers with complex campaign management, marketing resource management, and analysis functions. Epsilon routinely integrates Unica Enterprise applications as part of the overall direct marketing platforms we host and manage on behalf of our clients. Epsilon has implemented and hosted Unica Campaign for more clients than any other marketing service provider.

Adobe Neolane Campaign provides conversational marketing technology that empowers organizations to build and sustain one-to-one lifetime dialogues, dramatically increasing revenue and marketing efficiency. Born digital, with best-in-class email and inbound-outbound channel fusion capabilities architected into a single code-based platform, marketers achieve results in record time. Adobe Neolane Campaign is easy to use for both power and casual users, but powerful enough to drive the most sophisticated marketing strategies. Future-proof, Adobe Neolane Campaign has a track record of enabling its customers to adapt to new customer engagement challenges and exploit opportunities more quickly than their competition.

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than

Campaigns

Branch

Manager

Marketers

Data

scientists Personalized & Anonymous Analytics

10 Dashboard

OSCR/PMA

Workbench

(Salesforce)

Target Data Store

CNO

Epsilon Replaces in Phase 2

Lead / Enhancement

Data

TargetSource

Plus

4

TV Leads Web

Leads

Vertical

Lists

Other 3rd

Party Data

C3 OSCR/PMA

Workbench

(Salesforce)

Print/Digital

Transfer SMARTS

Media DB

CNO

Direct integration

Real time

Batch

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Insurance

+19.0% Increase in quotes

+13.5% Increase in conversion

+13.4% Increase in PLE

+16.5% Increase in LPT

42% Policies/HH

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Banking

84.0% Lift in new accounts

19.8% Lift in customer accounts

16.0% Reduction in CPA

145% Lift in average

account balance

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Executive dreams for

• Digital

• Big Data

• Social

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Build a separate

digital team or

make everyone

digital?

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Migrate from channel-centric

to customer-centric

marketing strategy; manage

and optimize Transition the marketing

organization to be more

digitally focused

Govern the marketing organization

(broadly) and the orchestration of cross

channel communications (specifically)

Governance

Organizational

Change

Management

Integrated

Marketing

Strategy

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Segmented Push

Focus Product Customer

Marketing Batch and blast marketing Segmentation marketing

Message Single message Single message

Channel Single channel Multiple channels

Analytics Foundational Descriptive

Technology No CRM, disconnected tools Underutilized CRM

Depth of customer connection

Level of CRM maturity

Marketing maturity building blocks

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“Stop Segmenting; Start Individualizing”

Brendan Witcher

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Stop thinking CX

Start thinking iX

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Data, analytics & marketing maturity model

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relevancy >>>

so

ph

istica

tio

n >

>>

“your intent”

“their intent”

Default push

marketing: Program-centric

(brand, channel)

messaging

Segment-driven

targeting: Varying message by

targeting ‘like’ groups

of customers

Real-time

contextual: Varying message by

incorporating real-time

cues in context

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To leverage big data virtually

anytime, from anywhere in

real-time you need sophisticated

customer data integration

Customer data integration

Receive Validate Identify Retrieve

Referential data Customer data

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Real-Time Segmented

Push

Focus Product Customer Relationship

Marketing Batch and blast marketing Segmentation marketing Automated, real-time

marketing

Message Single message Single message Targeted messages

Channel Single channel Multiple channels Cross-channel

Analytics Foundational Descriptive Strategic

Technology No CRM, disconnected tools Underutilized CRM Loyalty and/or CRM platform

Depth of customer connection

Level of CRM maturity

Marketing maturity building blocks

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Data, analytics & marketing maturity model

relevancy >>>

so

ph

istica

tio

n >

>>

“your intent”

“their intent”

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Default push

marketing: Program-centric

(brand, channel)

messaging

Segment-driven

targeting: Varying message by

targeting ‘like’ groups

of customers

Real-time

contextual: Varying message by

incorporating real-time

cues in context

Anticipatory: Dynamically controlling

messaging by

anticipating needs

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Thru the arc of the day

6am 12pm 6pm

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360o real-time, actionable consumer profile - for every individual

Who they are • 120M households; 200M consumer profiles

• Demographic composition: age, gender, HHI, occupation,

• Life-stage (new mover, pre-mover, marriage, baby)

• Automotive (year/make/model, mileage, etc.)

• Neighborhood-level and property data

What they buy • 86 million purchases per day

• More than Amazon & eBay combined

• Over 4,000 retailer CRM integrations

• SKU level; on & offline

Cross-channel marketing activity • 42B annual email opens

• Catalog, direct mail, loyalty activity, credit card

applications and survey

• Social media: How I share, what I follow, what I like

What they watch • In-depth consumer understanding of contextual

video consumption

• 60MM new digital videos tracked monthly

Where they go • 4B verified lat:long data points a day

• 200 unique points of interest

• Accurate within 10 feet

What’s their worth • Value scores

• Wealth scores

• RFM data

• Economic Activity Index

How they spend • Channel preferences, seasonality, categories, etc.

• 200+ propensity models (i.e. Uninsured health households,

insurance switchers, Medicaid potential qualified HHs, etc.)

• Self-reported purchase behaviors and brand preferences

• Unique plan-to-buy intentions not found anywhere else

What they browse • 86B interactions a day (2nd only to Google)

• 400 days of browsing, engagement

and download activity

• 2nd largest display network (comScore)

• 170K SDK-integrated mobile apps

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Emotional Need States

Emotional Context

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Emotion Arising. Research shows that emotion is the component of customer

experience that has the largest impact on loyalty, but it is also the area where companies

are least adept and often seemingly ignore.

Over the past few years, neuroscience and behavioral science research has begun to

fuel new techniques for affecting human emotions.

In 2016, expect to see a major jump in the number of companies that discuss, measure,

and design for emotion.

Customer Experience Trends for 2016

(The Year of Emotion)

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Conscious Context:

Aligning with individual’s current emotional state

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Detecting emotions on:

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Anticipatory Real-Time

Segmented Push

Focus Product Customer Relationship Emotional Context

Marketing Batch and blast marketing Segmentation marketing Automated, real-time

marketing

1:1 dialogue, anticipatory

marketing

Message Single message Single message Targeted messages 1:1 / Dynamic messages

Channel Single channel Multiple channels Cross-channel Optimized omnichannel

Analytics Foundational Descriptive Strategic Optimized

Technology No CRM, disconnected tools Underutilized CRM Loyalty and/or CRM platform CRM with Loyalty platform

Depth of customer connection

Level of CRM maturity

Marketing maturity building blocks

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Measurement

Return on

Investment. MC/NAP

Driven by response

rates, appointment

rates, and sales

conversion

Customer lifetime

value matters: policy

size, cross-sales,

retention

Materiality. Lead

Volume; Insatiable

appetite for leads

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Basic

• Simple campaign reporting

• A/B Testing

• No control groups

• No targeting models

• Measure / optimize philosophy not embraced

Better

• More advanced campaign reporting (rules-based attribution) & dashboards

• Multivariate testing

• Campaign / channel control groups

• Response models

• Measure / optimize philosophy more widely embraced

Best

• Advanced campaign reporting (data-driven attribution)

• Fractional factorial test designs

• Universal control groups

• Uplift (incremental response) models

• Media mix models & scenario planning

• Measure / optimize philosophy instilled across marketing ops

Measurement & optimization

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Source: Forrester April 2016

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of businesses

consider improving the

72%

customer experience

a top priority.

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Top 5 Take-Aways

1. Be Curious and Open to Change

2. Don’t Let Past Success Be a Barrier to Future Growth

3. Center on your Customer

4. Invest Time in Organizational Alignment

5. Remember the Human Element

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Chris Campbell

CNO Financial

Carl Madaffari

Epsilon

Dave Edington

Epsilon 59

Thank You

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