Managed Marketing

Services (MMS)
Moving from tactical to strategic
Analytical marketing

20 May 2008

 20 May 2008 CEQUITY Confidential

Managed Marketing Services
Business
Transaction
Data

Analytics
& Campaign
management

Market research Competitive

& Lifestyle Data
indicator
data

We support data based decisioning by providing Actionable Analytics™ using

enterprise and external data in a MANAGED MARKETING SERVICES model.
 20 May 2008 CEQUITY Confidential
CEQUITY offers a range of Managed
Marketing Services
Cequity — Our service offerings

Envision Explore Extract Enable Empower

Customer Management Managed Analytics/ Custom Database Managed Marketing Marketing Operations &
Consulting Campaign Services Design Solution Services Measurement services
ß Customer ß Customer Analytics ß Build Databases ß Campaign Services ß Measurement
Management ß Digital Analytics ß Manage databases ß Event-trigged frameworks
framework ß Campaign Design & Services ß Dashboards
ß Customer Execute Loyalty Marketing on-boarding
on-boarding ß Campaign Tracking & ß Lead Generation &
ß Loyalty Analytics
ß Customer Lifecycle ROI Management
Management
ß Managed Loyalty
ß Managed Service
Campaign services
Solutions
Data Quality ß Managed Channel
And Information Solutions
Management

 20 May 2008 CEQUITY Confidential

 Tools and Techniques

Modeling and Business Performance Data Management & Enabling

Optimization Research Analysis quality Operations
ß Forecasting ß Market Mix modeling ß Customized reporting ß Data quality audits ß Database Hosting
ß Customer Lifetime ß Benchmarking, ß Univariate / ß Creating Design of services
value ß Financial Impact Multivariate analyses Experiments
ß Return on Marketing modeling ß Pareto analyses ß Data cleansing &
investment ß Trend analyses classification
optimization
ß Survival analytics
ß Regression

Business Applications

Demand Management Supply Management Strategy simulation

Financial Analytics
Analytics Analytics Analytics

Supporting data-driven business decision process

How can clients quickly obtain the infrastructure and skill-set

required to deploy an analytics solution?
 20 May 2008 CEQUITY Confidential
Managed Marketing Services
Success Stories
ß  hopping basket analysis and cross-sell optimization for the Grocery Retail
S
business to improve targeting and conversion efficiency
ß  eturn on Marketing Investment for packaged consumer goods companies for
R
optimal allocation of marketing budget
ß  ustomer Segmentation and Churn Analysis for a renowned telecom
C
company
ß Predictive models for Cross sell & up sell programs for a financial Institution
ß  igh Frequency Store POS data analysis for new product, promotional,
H
purchase timing etc. for packaged consumer goods companies
ß  arge Scale up in Campaigns ,both in terms of complexity and volume for a
L
very large Retail Bank

 20 May 2008 CEQUITY Confidential

Cequity - Managed Marketing Services Solutions
Cequity‘s Managed Campaign services solutions allows clients to offshore their key customer
marketing processes to a partner who can flexibly bring “best in class” skills sets to the entire customer
marketing process. Cequity supports campaign management & marketing decisioning by bringing
the client’s data into a managed services framework which allows the client to rapidly scale up their
Customer marketing efforts.
Cequity also brings a robust 4 stage Campaign management process, Smart campaigning™,
which helps clients rapidly scale up their Customer marketing efforts.

Tra ns e
ns s p o
act
ion n Re
Da aig
ta mp
Ca ta
Da
Smart Campaigning ™
Action basis
Customer insight

ar y
n d Ca
o
c mp
l / Se aig
nB
t e rna urces lue
Ex a so prin
dat t

 20 May 2008 CEQUITY Confidential

Actionable Analytics framework™

Situation Analysis Behavioral Segmentation 1 to 1 Plan

Behavior
Customer Scoring Model Optimisation Matrix
• Absolute Scores / 1-to-1 Plan
Business
Objectives • Relative Scores • Portfolio level Objectives
• Predictive Scores • Possible actions to
• Historical Scores bridge Behaviour Gap

Customer Portfolio Map (different score/behavior combinations)

• Multiple Portfolios Data-BO Matrix
ROI Map • Portfolio Characteristics BO-Data Matrix
• Portfolio Behavior trends
• Portfolio Opportunities & Value
Iteration

Behavior Gap Analysis (for each Portfolio)

Existing
Customer Data Current Ideal Resultant
Portfolio Portfolio ROI Campaign Lists
GAP Offer Ideas
Behavior Behavior Opportunity

 20 May 2008 CEQUITY Confidential

Typical Marketing needs across Industry
¬
Explore
ß Which market should I play in?
ß What should be my products?
ß What is my demand?
ß What is competition doing?
ß How much will my customer value
my services?
Customer Life Cycle
¬
Empower
ß How profitable are my customer
strategies?
ß Can I build Customer lifetime
value approaches to manage my
customers better?
 20 May 2008
Extract
ß How will it be profitable?
ß How to generate good leads?
ß Make my Sales team more
effective?
ß Which Channels?
ß What price should I set?
¬
Enable
ß How can I reach my customer
across multiple channels?
ß How do I analyze customer
behavior to make my offers more
¬ relevant?
ß How do I scale up my Marketing
processes to campaign to my
customers in a seamless way?
CEQUITY Confidential
 l i e n t n e e d s
o f s e r v i c e s to address c
Bread t h
Extract
ting Models
Explore ß Target Mk
Mgmt.
ence ß Campaign
ß Market Intellig ß Price Sett
ing
ence ix Model
ß Comp. Intellig ß Market M
ß Price Tracking ß Sales Effe
ctivess
Strategy
ß Product Dev. ß Offer Opti
misation
entation
ß Market Segm ß CLTV Mo
deling

Empower
Enable ß Credit Scorin
g
-sell ß Loss Model
ß X-Sell, Up Collections S
trategy
odel ß
ß Attrition M Fraud Detecti
on
ß Loyalty S
corecard ß
Sat. Study
ß Customer
u s to m e r S e gmentation
ß C
ß Trigger M
arketing
ro fi ta b il it y M anagement
P
ß Customer

 20 May 2008 CEQUITY Confidential

Through utilising CEQUITY’s Managed
Marketing Services…
…Clients are able to increase speed to market with minimal
capital investments
ß CEQUITY offers a managed service model which allows Clients to:

− Minimise capital expenditure technology − Leverage the skills and expertise of CEQUITY’s
investments Analytics Services practitioners
10%
Consulting
Clients Transactional Data – 10% 5%
Customer, vendor, SCM, Phd Marketing

Marketing Solicitations, 20% 40%

25%
ITES
Product Data, Financial Data Masters MBA
25%
30% Analytics
20%
External/Secondary Data BSc /
IT
Engg. 15%
Prospect List/reference Files Others

CEQUITY Managed Analytics Platform Business Research

Modeling
Performance Analysis
Primary Research
Process Support
60
Apples
120 Management / Solutions
100 S. California
50 Bananas
C. California
80
40
N. California
60
30

e
40
20

v
20

i
10

t
Jul Aug Sep Oct Nov Dec 0
A B C D E F

tra
llus
C
Jan
B

ß members onboard
1990

I
Product A
A 1980

1970
Feb Product B

Mar
Product C

0 10 20 30 40 50 60 70 80 ß Ramp-up to 00+ by end 06

0 50 100 150 200 250 300 350

10 20 May 2008 CEQUITY Confidential

MMS End to End Campaign Solution
Internal/External Hosted Environment External

Staging

ª
SFTP
Customer Details
registration, Profile
updates, Surveys
Raw Files:
• Consumer details
• Transaction details Promotions by Channel
• Reactions
• Survey updates
• Reference files

TP
Transaction Data

ª SF
Current
Promotions
Reactions to Promotions Current Promotions Customer relations

Reference Files
ETL & DQA

ODS/DW
X
Campaign
Mgt

X https

[
Consumer Integrated data

Shared hub
11 20 May 2008 CEQUITY Confidential
A Proof-of-Concept engagement is
proposed to…
…demonstrate the business value to our clients
ª
ª
ª
ª
Benefits of MMS
Scope Definition Data & Systems Analyze Business ß Minimal capex
Piloting
& Mobilisation Assessment Value & ROI investment
− CEQUITY
ß Define scope ß Identify data ß Define pilot ß Identify infrastructure
for pilot required for scenarios business ß Faster time-to-market
ß Mobilise team analysis ß Execute value − Improved
ß Analyse scenarios ß Derive return effectiveness
internal and ß Analyse on investment ß Increased value-add
external results − Transparency of
systems
operations & risks
and identify
sources of − Investment
data efficiency
ß Increased business
agility
ß Scope defined ß Sources of data ß Analysis results ß Business value
− Business and
Team mobilised identified reviewed from MAS
market insights
identified
− Trends / impact
ß ROI determined
anticipation

A proof-of-concept approach will allow clients to determine the value of MMS before
embarking on full deployment of the solution
12 20 May 2008 CEQUITY Confidential
MMS Campaign Analytics
Campaign Operation Components
Design & Planning Pre-Campaign Work Customer Selection Performance Tracking

ß Customer Selection ß Workbook creation ß Customer Selection ß Tracking criteria

Strategy
ß Execution gap
analysis & closing
ß Process Mapping
ß Production Planning
ß Data Identification &
Mapping
ß Data validation
ß Selection Auditing identification
ß Mail file Creation ß Tracking report
ß vendor coordination ß Analysis &
ß Compliance & Other recommendation
fulfillments

Business Analyst Campaign Managers Reporting Managers

Skill sets
ß Quantitative & Analytical skills
ß Direct Marketing / List Processing Knowledge
ß Relationship Mgt. Skills
ß SAS / SQL knowledge
Tools Utilized
ß SAS Analytics wide knowledgebase
ß Unica-Affinium Campaign,e message,model & Detect
ß Encryption Software for Data Protection
ß KXen
13 20 May 2008 CEQUITY Confidential
Managed Marketing Services
Engagement Model (1/2)
I. ‘Pilot / Project’ engagement
ß Duration
− 1 – 3 months
ß Nature of engagement
ª
− 3 – 6subject experts deployed
parttime / full-time for the duration of
engagement
− Team located on-site / off-shore
ß Nature of deliverable
− One-time, identifying specific
data collection / analyses
recommendations
ß Rationale behind offering
− Short engagement to assess data
availability and benefits of analytics
− Client assistance provided to drive
long-term relationships
14 20 May 2008
II. Managed Services engagement
ß Duration
− 1 – 5 years
ß Nature of engagement
− dedicated resources (gradually
staffed-up)
− Team normally located off-shore
with account manager in place
ß Nature of deliverable
− On-going deliverables with clear
SLAs
ß rationale behind offering
− Long-term engagement with growth
potential based on delivery
CEQUITY Confidential
Managed Marketing Services
Engagement Model (2/2)
Internal/External Data Client CEQUITY

Data mining & Campaign

Option1: Project Based Engagement tools (Kxen, SAS & Unica)

Raw data, Project Objective and Timeline & Data Requirement Analysis/Campaigns
Flat files Deliverables Provided Agreed Upon

Ad Hoc Data Transfer Based

on objective Modeling & Optimization
Data •

Cleaning • Market intelligence &

research
• Performance analyses
Option2: Managed Services Engagement • Campaign Planning &
Execution
• Internal/External Reporting

Raw data, Periodic Analysis Requirement, Timeline, Data Requirement &

Campaigns/Analysis
Flat files Staffing agreed upon before the engagement

Data Ad Hoc Data Transfer Based

Cleaning on objective
Feedback Loop on Data Quality/
Campaign Response

15 20 May 2008 CEQUITY Confidential

Proposed Pricing Models
There are several pricing options, highly customizable
Fixed Rates Option

Charge model is based on number

MMS HUB

of customers and service spectrum,

$ taking away any significant upfront
investment giving quantifiable ROI
to the client
Number of Outputs in Month

Base Plus Transaction Loading

MMS HUB

MMS HUB
$ $

Number of Outputs in Month Number of Outputs in Month

Pricing for services would be at market rates for similar services, which suggests direct
savings of 20-25% to most clients
16 20 May 2008 CEQUITY Confidential
In Summary, Our value Proposition

Client benefits Key differentiators

ß Financial Impact ß CEQUITY in partnership - “skin in
− Demonstrable savings through ROI the game”
calculators
ß Skilled resources/Leveraged

ª
− Fixed to variable/no upfront investment
models
− Pay-Per-Use
ß Scalable capacity
ß Time To Market (TTM)
− Best practices
− Improved Effectiveness
− Repeatability
ß Increased value-add − Experienced domain/industry business
− Transparency of operations & risks analysts
− Investment efficiency
ß Proven benefits
ß Off-the-shelf jumpstart modules − Experience in driving benefits for
for “analytics starter” CEQUITY businesses & selected
clients
ß Increased business agility
− Solution expertise
− Business and market insights
− Trends / impact anticipation ß End-to-end offering
− Consulting led Managed Analytics
− Trends / impact anticipation
[ Focused on delivering business impact
17 20 May 2008 CEQUITY Confidential