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

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Steve

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MarkRichard

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CommericalBusiness

Extended

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Auto

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Life

CommericalBusiness

Extended

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Auto

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Life

CommericalBusiness

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Steve

Fiona

MarkRichard

Jane

Auto

Home

Life

CommericalBusiness

Extended

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Persona Profile Product Profile

In-the-moment, predictive personalization

web

mobile

email

social

apps

commerce

Act on in-the-moment

behavior

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MarkRichard

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CommericalBusiness

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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

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