Digesting Multi-channel Data
To Create Value For Your
Business & Customers
Ned Kumar Senior Strategic Marketing Fellow,
FedEx Services
September 2011
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About Me
Senior Marketing Advisor & SEO Strategist for FedEx Services with over 18 years of
analytics experience.
Prior job in Academics: Teaching Information Systems and Business Strategy in a B-
school
Diversified Background – Engineering, International Business, AI & Machine Learning,
Cognitive Psychology, Data Visualization and Modeling.
Current focus – Social Networks, Search Optimization, Interactive Marketing and
application of analytics to enhance customer experience, improve loyalty and leverage
synergy between channel interactions
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About FedEx Corp (NYSE: FDX)
Provides customers and businesses worldwide with a broad portfolio of transportation, e-
commerce and business services.
Annual revenues of $40 billion and consistently ranked among the world's most admired
and trusted employers.
Fedex.com - Over 23 million unique visitors monthly; more than 6 million package tracking
requests daily and 19.5 million packages shipped via FedEx Ship Manager monthly.
Numerous Awards – FedEx named a “Best Place to Work in IT” by Computerworld Magazine (2011) – Tenth time in 11years
– Ranking in the top 100 on InformationWeek 500 (2010) – top technology innovators
– FORTUNE magazine: No. 8 among "World's Most Admired Companies" (2011)
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Q: “How can I differentiate my company in the
marketplace?”
“Why do you want to be different? We are swimming in
an overabundance of products and services. ‘Different’
is no longer a differentiator. What is? Creating an
authentic relationship with your customers.” (Source: BusinessWeek (May 28, 2008), Viewpoint by Sohrab Vossoughi, founder of Ziba Design)
Relationship with your customers is key …
Why we need to move beyond just hoarding data….
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...and start leveraging analytics, BI, & other processes
… and Relationships are not build on uni-dimensional interactions.
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A Framework…
C
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CX&E Strategy
Channel Strategy
Segment Strategy
Product Strategy
Comp Intel
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Tech Support
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Challenge: Multiple Customer Definitions
SALES National Acct
MARKETING Account Number
CUST SERVICE Name/Tel Nbr
WEB Visitor id
RETAIL Email/Acct Nbr
AUTOMATION Meter Number
Who is the
customer
?
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Customer
X
Interactions
X
Channels
X
Offers
HELP!! I
don’t know
where to
begin and
end.
Challenge: Too much information
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Challenge: Sub-optimal Experience
Sep1, 2010 Interactive Marketing
engine on fedex.com
Disjointed and confusing experience
Am I in the right place?
Where do I go from here?
How do I get back to where I started?
– Inconsistent look, content, architecture
and user flows
– One-off sites and greater fedex.com
content not linked
– Redundant copy and actions
Static experience
– Customers don’t receive dynamic and
relevant content
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Customer FUSION enabled us to create a common master data set to support our multi-
channel and cross-channel efforts towards providing our customers with a better
experience
Global Owner
Country Owner
Customer Location
Account Number
Visitor id
Individual id
Email id
Meter Number
SALES
AUTOMATION ONLINE
RETAIL MARKETING
CUST SERVICE
Solution – Customer Fusion
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Who
Where
What
When
Identify the Customer involved in the interaction
• Customer Account Information / Visitor id
• Contact Information
• Address, etc
Identify the FedEx Touch point
• Operating Company (e.g. FXE, FXG, FXF, FXK)
• Functional Area (e.g. Claims Processing, Marketing)
• Channel (Web, Sales, Direct Mail, Sales)
Capture Information about the Interaction
• Reason for call (e.g. claim filed)
• Interaction specific information (e.g. claim amount)
• Interaction outcome (e.g. claim rejected by FedEx)
Capture Date and Time of the Interaction
CIH Interaction Framework
did FedEx
interact with?
did the interaction
take place?
was the interaction
about and what was
the outcome?
did the interaction
take place?
The Solution – Customer Interaction History
CIH provides a holistic view of customers’ interactions with FedEx across the
Enterprise, thus giving visibility into channel preferences, channel spend etc.
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The Solution – Multiple Contact Database
The Multiple Contact Database allowed the identification of unique
individuals that interact with FedEx at any level, channel, or touchpoint.
CHEERS Contact
Fred Rogers
Sales Contact
Claudia Garbo Complaints
Ginger Asta
Int’l Shipper
Dolly Sia
Box Shipper
Dicky Moe
Domestic
Shipper
Erin Banerjee
Web
Contacts
Peter
Shark
Consignee Shari Lee Letter Shipper
Jan Grouper
Meter Contact
Donna Hue
Primary Contact
John Doe
PRE MCD World
Acct No: 123456789 = A B Company =
MCD World
A B Company =
HIERARCHY TREE:
Global Duns#
Ultimate duns#
HQ duns#, Parent duns#, National Account#
Address link
Business link
Account#
Individual link
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Solution – Interactive Marketing Initiative
“Creating an infrastructure that applies predictive and statistical
techniques to tailor online experiences to meet the needs of individual
visitors or visitor segments”
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Synchronize efforts across channels and marketing organizations.
Email Web Analytics SEO/SEM
Social Media Central Hub Web Interaction
Optimization
Content Creation Ad Serving A/B & Multi-varied
Testing
Strategy, process, analysis, campaign management, coordination, and cross channel integration.
Analyze website activity. Develop event detection and triggers, maintain interaction history.
Execute transactional, acquisition, and retention email campaigns.
Engage with customers in dialogue, serve offers, and generate sales leads.
Develop most relevant, appealing, and dynamic content.
Deliver ads to publishers, manage targeted ad trafficking.
Optimize content. Buy and optimize keyword ads.
Deliver customized offers to targeted audiences based on user behavior.
Test page layout and user flows, offer and creative combinations for highest conversion rate.
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…so that the right message and experience reaches the
right audience at the right time and at the right place.
Shipping to Sydney
Relevant messaging to 1st
time visitors. MVT creative.
Customer location is geo-
specific
Links, content tied to previous behavior or business rules and
tested via MVT
Business rules drive promotions (e.g. promote
premium services if tracking Home Delivery)
Keyword searches and/or email lead to
personalized image/text pages
Personalized welcome and
Loyalty program status
User specific messaging behind login
Micro-segment based messaging that is
relevant to that audience
Non-l
ogged in h
om
epage L
ogged in
hom
epage
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A single source of master data to support cross-
channel interactions
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Marketing
Retail
Cust Service
Sales
Web
Couriers
Tech Support
Automation
- Number of visits
- Number of visitors
- Session duration
- Number of page views
- Conversion rate
- Number of registrations
- Number of visits
- Number of page views
- Industry
- Number of mktg contacts
- life-cycle stage
- Number of sales calls
- RFM cell
Channel
Specific
- Channel Specific
- Firmographics
- Seasonality
- Life-cycle
- RFM
- Transactional
Data that could be leveraged to create a rich
customer profile and cross-channel metrics
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The Analytics
“You cannot improve one thing by 1000% but you
can improve 1000 little things by 1%” - Jan Carlson
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Implementing the right BI tools
• Having BI tools is not enough – it has to be implemented on top of a solid data management infrastructure if one is seeking to gain competitive advantage using analytics. A couple of things to keep in mind:
• “Garbage in, Garbage out” – Even with the best tools, there has to be a process in place to ensure data quality and Master Data Management.
• An efficient ETL process and automated report distribution to reduce FTE overheads.
• Implement tools suited to your needs & analytical maturity
• Are you looking for a complete BI solution?
• Are you looking at a standalone or something that connects to multiple databases?
• What is the size of your datafeeds and how scalable do you want the tools to be?
• How critical is it to have a state-of-the-art reporting module?
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Sales
Data
Analyst Super Ninja – Great on paper but not practical
• It is better to start out with understanding a couple of key channel interactions of your customers and then expand that understanding to other channels.
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- Do I have the expertise?
- What is the sample size?
- Are there lots of missing
data?
- Is the data heavily skewed?
- Do I need to look at absolute
impacts?
- Is there a need to use latent
constructs?
Many Paths to Extracting Insights or the 1000 little things
you can improve by 1%…
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Rules Based Clustering Methods
1
n
Segmentation Methodology
Nu
mb
er
of
Ch
an
nels
(D
ata
so
urc
es)
Web /
Rules
Based
Multichannel /
Statistical
clustering
methods
Push the limits on Segmentation
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• Example - Frequency of Visits X Frequency of Shipments
The Simple 2D Matrix
Frequency of Shipments
Fre
qu
en
cy o
f V
isit
Note: The numbers are fabricated for confidentiality reasons & are for illustrative purposes only
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Deep-dive on the 2D
Note: The numbers are fabricated for confidentiality reasons & are for illustrative purposes only
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Segmenting Based on Decision Trees
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Zip Segmentation & Behavioral Segmentation –
Targeting Anonymous Users & Customization
Real time targeting based on session specific customer behavior on fedex.com
Targeting based on integrated online/offline campaigns
Targeting based on fedex.com login account customer profile
Anonymous targeting based on zip profile
FedEx Customer – Zip Profile
Lifetime Value
Integration
Firmographics Mode Preference
Seasonality
Product Affinity
Tender Preference
FDX Relationship
Responsiveness Commitment
Cluster
Cross-sell and up-sell opportunity
FedEx Customer – Online Behavior Profile
# of visits
Session duration
# of page views
Time between visits
# of content views
# of conversions
Brwsr/Lang/Speed
New/Ret. customers
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Automation Segmentation - Uncovering Cross-sell/Up-
sell Opportunities
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Profitability
Weighted
Score
Automation %
Weighted
Score
Claims and $ per 100
shipments
Weighted
Score
Calls per 100
shipments
Weighted
Score
LTV
etc...
Weighted
Score
Customer Value
Contact
Frequency Content of
Message
Call
Cycle
Business
Rules for Both
Inbound and
Outbound
Communication
Value Segmentation – Driving Contact Frequency &
Message Content
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• Identification of events and/or interactions that occur together.
• Can do it with a single channel but multi channel analysis makes it more powerful.
• A creditable rule has a large confidence factor, a large level of support, and a value of lift greater than 1. Rules having a high level of confidence but little support should be interpreted with caution.
Web Claims Cust
Service
Total Sessions = 5,000,000
Web Claims = 1,000,000
Customer Service = 250,000
Web Claims and Customer Service = 100,000
Rule: If a visitor viewed the online claims page, then 10% of the time they also make a call to the
customer service.
Confidence: 100,000/1,000,000 = 10%
Support: 100,000/5,000,000 = 2%
Expected Confidence: 250,000/5,000,000 = 5%
Lift= Confidence / Expected Confidence = 2
Transaction Table
Evaluation Criteria
Identify Affinities using Association Analysis
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Segment 1
Segment 4
Segment 3
Segment 2
Path Analysis - What are the visitors looking at?
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Right Hand of Rule = Label
Left Hand of Rule = Mktg15%Disc
Confidence(%) = 78.97
There is a 78.87% confidence that visitors who got touched by the 15%
discount Marketing Campaign will create a label online.
Path Analysis – Are your efforts working?
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Customer
Experience
Employee
Loyalty
Brand
Value
Proposition (Pricing, Product
Offering, Etc.)
Customer
Loyalty
Financials (Market Share, Revenue,
Profitability, etc.)
By understanding
the relationships
We can move
the needles
higher on our
Corporate
“Dials”
Individual Loyalty Drivers Major Drivers Loyalty Financials
Linkage Modeling – A technique to understanding
Relationships, and identifying Loyalty drivers
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Survey Data
Linkage Modeling – The Customer Loyalty Model
Overall
Quality
Convenience
Customer
Loyalty
Perceptions
of
FedEx
Overall
Value
Quick
Problem
Resolution
Manage
Interactions
Overall
Shipping
Easy
Selection
Problem
Resolution
Areas
Account
Management
Overall
Invoice Invoicing
Areas
Overall
Delivery Delivery
Areas
Account
Initiation
Price
Shipping
Areas
Partnership
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In Conclusion – Execution of foundational initiatives
combined with analytics have delivered significant
improvements across the board
Improved retention and penetration rates for Small Business Customers
Detailed life-cycle analysis at various levels – customer, facility, products
Click through Rate (CTR) on marketing campaigns ~425X higher than pre-IM state
Search traffic and ROAS improved significantly month-over-month
Ability to test possible links between face-to-face and digital interfaces as effective drivers
of customer behavior (customer service, chat, digital messaging linkages)
Cross-marketing of product and services across Opcos.
Creation of a Marketing ecosystem that integrates data architecture, technology systems,
and tools to synchronize messages across channels and touch points.