BUSINESS INTELLIGENCE

OVERVIEW & APPLICATIONS

Definitions
ƒ The technology that enables companies to explore, analyze, and model large amounts of complex data.
Consists of statistical modeling, data mining and multidimensional data exploration technologies (OLAP).

ƒ Business Intelligence (BI) is normally built on one or more well defined data marts. BI models could also feed the
data sources (DW) with metadata.

ƒ Application of BI on customer data leads to Customer Intelligence or Customer Analytics

ƒ Must be thought as an integrated process of every CRM solution (thus defining Analytical CRM)

ƒ BI is based on several technologies & scientific areas such as information technology, OLAP, data mining,
statistical modeling, text mining, visualization techniques

http://www.datamine.gr
BI, Overview of Applications
Decision Making processes: well defined customer segments and KPIs can be analyzed versus time and in
combination to several customer & product attributes: changes in customer base (quantitative and/or qualitative),
revenue and profitability monitored in detail. What if scenarios with ROI models, on marketing, CRM or other actions.

CRM & Customer analytics: Infrastructure that provides overall assessment on each single customer: profitability,
loyalty, credit risk, usage patterns. Traffic information modeled and analyzed versus time along with customer profiles
enable churn management, monitoring & prediction or Credit Risk assessment.

Customer Loyalty: Business logic that encapsulates customer insight in order to build long lasting customer
relationships: the right offer to the right customer through the right channel can help maintain high levels of Customer
satisfaction. More accurate measurement of customer satisfaction is also possible through BI techniques (directly
through targeted e-surveys or indirectly from QoS figures), regular stratified random sampling providing feedback to data
warehouse or marketing database.

Campaign Management: Customer selection, eligibility criteria, Target group definitions and profile analysis, campaign
execution automation processes can be optimized using BI infrastructure.

Marketing & Sales: Customer usage patterns, profiles and customer base trends may reveal significant cross-selling
or up-selling opportunities. Marketing functions can greatly benefit from BI in designing new products, performing what if
scenarios or closed group studies. Performance of marketing actions, special offers or campaigns can be assessed in
details using customer responses and changes in usage patterns: The Closed Loop Marketing

http://www.datamine.gr
Business Intelligence, Architecture
DATA PROVIDERS DATA WAREHOUSE - ANALYTICS DSS AREA - DATA CONSUMERS

Billing & Data cleansing, Reporting Tools

Provisioning Systems Transformation to ‘flat’ OLAP
data structures
Customer Profiling
Account data DATA WAREHOUSE

Services & tariffs

Customer Base
Billing & KPIs monitoring
payment history

Flattened customer
ETL data structures REPORTING
processes Reliable customer data Customer Segmentation
Customer Care, datamart
Operational CRM with time dimension Manager

Contact History, Physical

Complaints, Customer,
Activation Requests Account & Contact,
Customer Scores
Customer
Billing data
TRAFFIC Viewer
Payment behavior
processes CRM
Segmentation data
Utilization profile & datamart
Marketing Data Aggregate Traffic patterns
Products & services
properties, Operational
Campaigns, Micro& Macro CRM Platform
segmentation schemes
Descriptive statistics, Statistical
traffic patterns Modeling
Traffic Data
Raw server log Sales Automations
data-clickstream,
Statistical models, churn prediction, credit
Browsing patterns
scoring, fraud cases, segment-cluster-
campaign memberships

http://www.datamine.gr
Business Intelligence, Applications
Data Modeling Data understanding and basic statistical analysis (descriptive) • Identify
critical entities, data quality problems, limitations & special cases • Collect &
organize reliable information from every business function of the
enterprise • Design data cleansing & validation procedures, flat data
structures, synchronization mechanisms • physical customer

Analyze data • build statistical models • design customer metrics, extend

Customer Metrics data structures, incorporate logic into synchronization mechanisms •
customer base evolution & cluster analysis • profitability, consumer credit
risk, churn rates, profiles, tenure, customer value, expected value

Data structures, combining customer related entities and customer metrics -

CRM data mart scores • Also known as ‘Marketing Database’ • Flat data structures,
containing hundreds of customer attributes versus time: behavioral data,
demographics, payment & contact information for a series of time frames
enabling modeling of change in customer data • Could be outside DW
and/or Multidimensional

Customer Analytics Advanced models (statistical - data mining) on customer profiles &
transactional data producing probabilities for certain events,
homogenous clusters, behavioral patterns • Predictive components

Integration with operational CRM system • Establish systematic data flows

Front End Apps from/to CRM, Call center, corporate site or any other customer touch point •
Development of additional front-end applications for management &
decision making purposes.
http://www.datamine.gr
 Typical Customer Metrics
Billing & Payment Statistics
ƒ Total amount Billed – Amount due
ƒ Billing Statistics (Averages,Variability)
ƒ Statistical Trends on bill \ payment
ƒ Credit Score (payment behavior)
ƒ Profitability or Revenue Rank Score
ƒ #accounts (by status), Product & Services, segments
Customer Care or Sales Contact History
ƒ Frequency of Calls - Requests
ƒ Distribution by Service, Reason, Type, Priority
Metadata
ƒ Statistically derived Scores, clusters and
segmentation schemes
ƒ Marketing Research data, customer satisfaction
surveys, on-line customer surveys, customer
interaction data (CRM campaigns, Loyalty program
memberships & usage, special offers)
ƒ Micro-Macro segmentation, clustering memberships,
control-placebo group memberships
Traffic analysis
ƒ Email usage: IN vs OUT
ƒ Email usage: distinct email addresses along with
frequency analysis - dependency
ƒ Email usage: metrics on volume of data, files, message
size, file types transferred
ƒ Certain Services usage patterns (for instance categories
along with frequency analysis
ƒ Distribution of sites – pages visited: Distinct Number,
Frequency & average time spent)
ƒ Distribution of daily traffic on predefined set of sites or
categories (on-line shops, news, entertainment,
educational, academic, scientific etc)
ƒ Time of Day distribution
ƒ Day of the week distribution
ƒ Quality of Service indicators
ƒ Bandwidth, daily, monthly, statistics, trends
http://www.datamine.gr
Typical Customer Dimensions & Measures
ƒ Systematic, normal, occasional user (based on frequency/duration of connections)
ƒ Professional, academic, fun (based on sites visited-content preferred)
ƒ Service sensitive, price sensitive
ƒ Power, normal, entry level user
ƒ Demographics, customer type (business-consumer, traffic based)
ƒ Average Revenue Per month, expected yearly revenue
ƒ VAS usage, mailbox or other services usage
ƒ Tenure
ƒ Use of e-commerce - On-line transactions
ƒ Seasonality indexes
ƒ Statistically derived clusters (homogenous groups pf customers)

In a GSM environment
ƒ Calls versus SMS usage
ƒ Incoming versus Outgoing Calls
ƒ Small number of long duration calls versus large number of small duration calls
ƒ MSISDN dependency index, based on weighted scores of distinct IN/OUT MSISDNS

http://www.datamine.gr
 Additional Applications
ƒ Advanced OLAP reporting, definition of cubes that allow multidimensional views of customer data
ƒ Monitor & analyze customer base evolution, monitor time series of critical KPIs, define customer base health
indexes
ƒ CRM program development, monitoring & optimization (closed loop marketing)
ƒ Customer satisfaction measurement & monitoring
ƒ Design & develop customer Loyalty procedures
ƒ Development of micro & macro segmentation schemes
ƒ Identify cross selling & up selling opportunities
ƒ Define, Monitor & predict Churn
ƒ Enhance campaign management procedures, measure effectiveness, calculate ROI
ƒ Study bad payment behavior, develop credit scoring models
ƒ Build optimized rules and policies for identifying fraudulent cases
ƒ Flexible target group definitions, possibility for stratified random sampling for further customer
Research – survey studies.
ƒ Marketing activities (promotions, offers, campaigns) assessment capabilities
ƒ Fraud detection

http://www.datamine.gr
Additional Applications

TARGET GROUP DEF TARGET GROUP SPECS

MARKETING CUSTOMER BASE

USER SEGMENTATION CRM
& CAMPAIGN DATAMART
PROFILE & STATISTICS MANAGEMENT SYSTEM
ANALYTICS & RESPONSE

PERFORMANCE EVALUATION & ROI

CUSTOMER &
ANALYSIS CUSTOMER CAMPAIGN
RESPONSE DATA
DATA

CRM / CALL CENTER

SYSTEM / EMAIL SERVER

CUSTOMER PROMOTION- ƒ Closed loop marketing: gather

OFFER
RESPONSE
DATA
customer responses to DW
ƒ Performance evaluation - ROI
ƒ Control – Placebo group design
CUSTOMER

http://www.datamine.gr
 Campaign management
Define Campaign, Release Finalize campaign,
Analyze data,
special properties Campaign, manage analyze data,
define target group
& Objectives Smooth execution calculate ROI

ƒ Define business needs, objectives of the campaign

ƒ Basic description of the target group, the time frame, the channels to be used,
the budget to be allocated, human resources needed or special I.T. infrastructure
ƒ Evaluation criteria: Definition of the criteria to be applied in order to assess campaign efficiency (such as expected
responses, expected revenue or usage increase)
ƒ Decide on use control & placebo procedures in order to measure campaign success (split the target group in to
two random samples)
ƒ Decide on campaign customer contact scripts, follow up procedures

http://www.datamine.gr
 Campaign management
Define Campaign, Release Finalize campaign,
Analyze data,
special properties Campaign, manage analyze data,
define target group
& Objectives Smooth execution calculate ROI

ƒ Descriptive analysis of data based on predefined metrics (such as ARPU, tenure, usage patterns &
categorizations, cluster memberships, demographics)
ƒ Analyze resulting target group versus other characteristics – metrics (not necessarily used as selection criteria)
to verify the normality of the set of customers.
ƒ Customer Eligibility checks: Apart from suitable customer profile (according a specific
target group definition) a given customer must meet specific eligibility criteria before
communicating the campaign (e.g. check of open balance or amount due or fraud indicators
– for post paid services)
ƒ Additional eligibility checks for recent customer requests, offers, contacts or other promotional activities (for
exclusion or extra handling)

http://www.datamine.gr
 Campaign management
Define Campaign, Release Finalize campaign,
Analyze data,
special properties Campaign, manage analyze data,
define target group
& Objectives Smooth execution calculate ROI

ƒ Release the campaign, make eligible customer dataset available to call center (CTI) and/or email or other server
depending on communication channels assigned to this campaign
ƒ Monitor campaign execution progress on regular basis, collect overall progress data and make adjustments if
necessary (from script enhancement to human recourses allocation)
ƒ Monitor follow up actions for customers that have accepted the offer-proposal, ensure smooth completion of the
process (POS, Corporate site, Customer Care).

http://www.datamine.gr
 Campaign management
Define Campaign, Release Finalize campaign,
Analyze data,
special properties Campaign, manage analyze data,
define target group
& Objectives Smooth execution calculate ROI

ƒ The closed loop marketing: Collect all resulting data to the initial data source, correlate and analyze campaign.
ƒ Customer contact history within this campaign (whatever the response – if any) becomes part of the overall
customer (contact) history record and available for future analysis, modeling & reporting.
ƒ The same dataset is available as history of the specific campaign and of the customer base. The campaign
execution event marks the evolution of the customer base (comparative reporting before and prior the campaign)
for trends or pattern identification
ƒ Compile ROI models, compare expected results with actual, analyze versus initial statistical profiles of the target
group, interpret the results

http://www.datamine.gr
 22 Ethnikis Antistasis Avenue,
15232 Chalandri,
Athens, Greece

George.Krasadakis@datamine.gr
info@datamine.gr
http://www.datamine.gr

http://www.datamine.gr