Managing Selfevolving Portfolios of Customer Profiles

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Managing Self-evolving Portfolios of Customer
Profiles

• Petros KAVASSALIS
• Themis ZAMANI

ITS Berlin September 4-7, 2004
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Paper authors

• Petros KAVASSALIS
• Themis ZAMANI
• Michael MPATIKAS
• Zoi POLITOPOULOU
• Haralambos SABALIS
• Ntina SPYROPOULOU

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Agenda

• Marketing goes digital
• Technology-based Marketing
• Internet Mobile channels emerge
• Challenges ahead
• The ATL Messaging Management Engine project
  (Univ. of Crete)
• Concluding thoughts

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ME under pressure

• Marketing executives (ME) learn to live with
  multiple marketing technologies
• Marketing Campaign Management
• Enterprise Marketing Management
• Digital Direct Marketing
• Marketing and Sales Effectiveness Technologies
• New issues arise
• Prove marketing operations performance
• Customer-by-customer profitability

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What exactly happens?

• Most new marketing technologies are enabled
  because of the proliferation of the marketing
  channels
• But also enable companies to store data

customers
INTERNET MOBILE
data
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Implications

• Increased data storage together with new
  capabilities for measurement and reporting
• Lead to a more granular marketing (down to
  customer detail)
• Tighten customer relationships by encouraging
  dialogue
• Allow for personalized marketing content
  (personal messages, special discounts)
• Help companies to develop an enterprise-wide view
  of the customer

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Marketing Management

• T
• M E
• A C
• R N
• K O
• E L
• T O
• I G
• N I
• G E
• S

• Needs for
• Efficient management of collected data
• Systematic collection of customer feedback
• Provision of analytical information
• Effective privacy protection
• Enterprise-wide privacy policies
• Privacy regulation including self regulation
  (technology embedded)

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Agenda

• Marketing goes digital
• Technology-based Marketing
• Internet Mobile channels emerge
• Challenges ahead
• The ATL Messaging Management Engine project
  (Univ. of Crete)
• Concluding thoughts

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Do data have value?

• Can Data be
• Collected
• Stored
• Detailed
• Individualized
• Linked

Users

• Visit sites
• Send messages
• Purchase goods

Data
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Yes! If you can build knowledge
Customer data
Knowledge
Information
See Boisot Canals, Dosi Egidi, Kogut
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Efficient data management

• Data ? Information Information filters on data
  (structure data, recognize regularities)
• Customer profiles Information filters
• What is a customer profile?
• Information repository
• A historical record of the behavior of a customer
  or prospect while interacting, via an electronic
  channel, with a particular company or product(s)
• Comprises pairs of ltobjects (or events)
  attitudesgt
• Builds a historical summary of each
  prospect/customers behavior, which may be
  updated not only through the accumulation of new
  marketing information but also with transaction
  data (sales)

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Customer profiles in practice

• Internet User
• Site 1, 2, 3. n

• Mobile User
• Service 1, 2, 3. n

SMS campaign
response date and time
conducted actions (participation in a SMS poll
or expression of an opinion through a SMS
message)
content of customer message (s)
Frequency of participation
other attitudes
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Effective privacy management

• Information ? Knowledge Enterprise-wide privacy
  management (impose access controls and multiple
  restrictions on collected PII use, to act in and
  upon its environment consistently with rules and
  standards)
• IBM e-P3P (IBM Platform for Enterprise Privacy
  Practices Privacy Enabled Technology, PET)
• What is IBM e-P3P? (http//www.zurich.ibm.com/secu
  rity/enterprise-privacy/)
• A framework enabling business to publish clear
  privavy promises and enforce these promises
  throughout the enterprise
• A privacy architecture defining
• What data are collected
• For what purpose they will be used
• How long they will be retained
• How and when these data may be delivered to third
  parties (beyond the enterprise)

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IBM e-P3P extends W3C P3P
IBM e-P3P
PII
Applies To Data collection storage
processing strategic use
eP3P Implements an enterprise privacy
enforcement system to effectively manage privacy
P3P
Applies To Data collection
P3P Is a standard, computer readable format for
privacy policies
Mission Enforces E-P3P privacy policies, allows
for a transparent auditing, while promising a
provable P3P statement to customers
Mission Defines privacy policy processes and
supports transparency in data collection
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New regulation paradigm
Regulation
Self-Regulation
Legislation
Use of Privacy-Enhancing Technologies
Industry Standards or Third Party Verification
2002/58/EU
P3P IBM eP3P
Privacy Policies
MMA TRUSTe
OECD

• Adoption of privacy policies
• Notification of privacy policies to users
• Availability of enforcement and redress
  mechanisms
• Promoting user education and awareness
• Use of privacy-enhancing technologies
• Use and development of contractual solutions for
  online transborder data flows

Enforcement Mechanisms
Codes
Actions
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Agenda

• Marketing goes digital
• Technology-based Marketing
• Internet Mobile channels emerge
• Challenges ahead
• The ATL Messaging Management Engine project
  (Univ. of Crete)
• Concluding thoughts

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ATL MMM an open to the community project

• Collect and process data from mobile operations

SMS Interactive TV / Radio
Mobile Coupons
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Example a m-m campaign
invite
response
reveal identity
motivate
INFORM
SEND SMS
SMS REPLY
SEND AGAIN

• Set business objectives
• Define success rates
• Decide service modules
• (text-to-win, quiz, poll, coupons etc.)

• Track real time data
• Provide response rates

• Implement the services modules
• Send messages verify delivery
• Collect responses

Build or acquire opt-in lists
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ATL MME
ATL mm gateway
ATL mm platform
ATL studio
Mobile operators (SMS-C) MOBILE GATEWAYS
HTTP / SMPP
Users entry
Mngt of 4/5digits numbers
ATL mm permission database
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How it works?
ATL mm platform

• Mobile Marketing
• Mobile Coupons
• business mobile messaging
• mobile CRM
• enterprise m-channel
• SMS Interactive TV / Radio
• SMS / MMS TV
• SMS Radio

ATL studio
ATL mm permission database
Participate in
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SMS streams like clickstreams
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Architecture
ATL studio
Profile SUBSET
USERS
UPDATE
PRIVACY POLICIES
Third sources
PROFILES
DATA COLLECTION ORGANIZATION
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Element Project Sheet

• Project owner (data user)
• Run (or done)
• Type of Module (Opinion, Vote, Other taylored
  module)
• Type of project (mobile marketing, Interactive
  TV/Radio, etc.)
• Content (Information, Interaction, Advertising)
• ?e????af??? st???e?a
• Project name
• Starting date
• Ending date
• Keyword(s) Euro2004, Athens2004
• Short number 4160
• Response message

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Element Customer Profile
Local profile Project 1
Project 1
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Local profile Project 2
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Project 2
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Project 3
Local profile Project 3
(Dynamic) Customer profile
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An example of Customer Profile
self-evolving
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ATL MME open source m-P3P

• We implement IBM e-P3P in the context of the
  mobile business and in an open source framework
  (ATL MME m-P3P)
• ATL MME contains
• A customer profile information filter on
  collected data
• A privacy policy architecture that
• Defines types of PII data collected from
  customers
• Describes what operations should be performed on
  PII data, for which purposes, by which data user
• States actions that have to be performed
  (obligations)
• Explicitly models opt-in opt-out choices for
  the customer

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Types of PII data (from data subjects /
customers)
Third Party (through ATL studio)
P4
ATL mm permission database Entry
P1
soft opt-in
ATL mm platform
register
P2
Structured Data
P3
Call Center / Web Site (through ATL studio)
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ATL MME m-P3P implementation
ATL studio
Who? (data-user)
Operations
Project Sheet
data-user, project
Admin
PII DATA ENTRY
Purposes
Obligations
Obligations
Local Profiles
Dynamic Profiles
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In detail
Who?
ATL studio
Project Sheet
Operations
- only read data - write on data - disclose data
data-user, project
Purposes
- send response message - send marketing message
PII DATA ENTRY
Admin
Obligations
Obligations

• - do not operate for under 14
• erase local profile when receiving opt-out SMS

- erase profile if no participation for more than
12 months
Local Profiles
Dynamic Profiles
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Agenda

• Marketing goes digital
• Technology-based Marketing
• Internet Mobile channels emerge
• Challenges ahead
• The ATL Messaging Management Engine project
  (Univ. of Crete)
• Concluding thoughts

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Open issues

• Is the customer profile a viable data
  information filter or business will act per
  project? (how much history will matter?). Is
  the storage of customer profiles for business use
  a socially acceptable practice?
• Are efficiency / privacy issues at the center of
  attention of mobile service business who are
  small players? (how mature is this industry to
  operate consistently with rules and standards?)
• Do the customers easier accept to provide data
  when there is a strong (auditable) promise for
  privacy protection?