5/21/2018 Vistex

1/40

Real-Time Offer ManagementDetailed View

SAP Real-Time Offer Management 7.1

Detailed View

5/21/2018 Vistex

2/40

SAP 2010 / Page 2

SAP Real-Time Offer Management (RTOM)

RTOM enables organizations to conduct intelligentand relevant customer interactions

RTOM recommends the best customer treatments in

real-time to build profitable customer relationships.

Turn inbound interactions into revenue opportunities

Fight customer churn and boost loyalty

Accelerate customer acquisitions

Empower agents and interaction over all touch points

Improve customer experience and satisfaction

5/21/2018 Vistex

3/40

SAP 2010 / Page 3

Business Environment

Business Process

Solution Overview

Value Proposition

Agenda

5/21/2018 Vistex

4/40

SAP 2010 / Page 4

Agenda

Business Environment

Business Process

Solution Overview

Value Proposition

5/21/2018 Vistex

5/40

Bottom line: Need for real time decision support during inetarctions

The Business EnvironmentCustomer and Product Perspectives

Facilitate

Offering

Personalize

Interactions

Growing PRODUCT complexityConsolidation, collaboration and virtualization result

in rich and complex product portfolios overfrequently fragmented business supporting systems

High CUSTOMER expectationsDemand for relevant information and consistent

experience across the enterprise and its channels

5/21/2018 Vistex

6/40

Market AttractivenessAnalysts View

Strategic Planning Assumption: By 2011, the two most significant changes in

the contact center will be agent access to real-time decision support and aview into the customer's activity, including Twitter, on the organization's website

and beyond". Gartner, Predicts 2010: Customer Service Meets Social CRM (Dec 2009)

During 2010, real-time decisioning will be the most adopted category of

analytic applications. Gartner Predicts 2010: The Top Five Concerns in the Analytic

Applications Space for the Coming Year (Dec 2009)

Real-Time Offer Management can improve your customer response rates as

much as 10 times than what you typically achieve with direct marketing. Gartner,

Five Business Benefits to Be Gained From CRM Multichannel Campaign Management

Inbound/Outbound Integration (Nov 2008)

... the desire to enrich the experience of each interaction, a captive and

attentive audience, and the opportunity to reinforce the brand, all make inbound

marketing a compelling solution. Forrester, How technology enables inbound marketing

2008

5/21/2018 Vistex

7/40

CRM Marketing Hype Cycle 2009

Market AttractivenessReal Time Decisioning - a key technology!

Analytic Applications Hype Cycle 2009 Context Aware Computing Hype Cycle 2009

CRM Service Hype Cycle 2009

5/21/2018 Vistex

8/40

RTOM recommends in real-time productsand next best actions

RTOM learns from response and improves its recommendations

SAP Real-Time Offer Management (RTOM)

RTOM is a real-time recommendation technology that enables

organizations to conduct intelligent customer relationship

SAP 2010 / Page 8

Real-TimeDecisioning Engine

Offer ManagementEnvironment

Self-Learningand Analytics

Solution Foundations

Recommend

optimal offers

Create & manage

offers portfolioLearn and adapt

Measure and

provide insights

RTOM

Process

5/21/2018 Vistex

9/40

Key Capabilities

Multi-channelrecommendation engine supporting closed-loop Marketing

Real-time data access and calculation available for decision support

Recommendations provided with personalized reasoningto improve acceptance

Offer are prioritized by response rates and/or business value

Holistic out-of-the-box business analytics, reporting and dashboards

Out-of-the-box integration with SAP landscape

Opennessfor third-party / legacy integration

High performance and scalability

5/21/2018 Vistex

10/40

Why Clients Use RTOM?Sample Use Cases

SAP 2010 / Page 10

Sample Use Case Expected Benefits

Enhance cross-/up-sell and retention during

inbound and outbound interactions

Increase revenues while keeping service

productivity; Increase customers lifetime value

Guide interactions and recommend next best

actions

Empower customer facing personnel;

Streamline self-service channels; Increase

customer and agent satisfaction; Reduce

handling time;Strengthen branding

Synchronize and improve offering across all

interaction channels

Increase customer satisfaction; Boost online

sales; Decrease costs;

Enable Marketers and other business users to test

ideas and deploy them in short-time-to-market

Decrease Marketing spending ;

Shorten time-to-market

5/21/2018 Vistex

11/40 SAP 2010 / Page 11

One of the top ten largest financial

services holding companies in the

United States

Business challenges

Complex offeringthe bank manages a comprehensive offering

environment: banking, brokerage, insurance, investment, mortgage, trustand payment services

Wish to create and manage a multitude of cross line of business offers(e.g. mortgage + insurance)

All product should be available over all channels

CRM strategy & objectives

We are always here for youService available 24 hours a day, 7 days aweek; 24-Hour Bankers are available 24 hours a day, 7 days a week; etc.

We have the product you need and if not we will create it

Immediate and accurate execution guaranteed

Results with SAP RTOM

Introduced in a month 35 different cross/up sell and retention offers

Agents are doing 50-60% better and improving month to month

18% positive response to RTOM offers; additional 12% requested follow up

3 hours to train new agents

Up and running in call center within 3 months

ROI within 6 months

A Top Ten U.S. BankIncreased Inbound Sales by 60%

52%

57%

60%

48%

50%

52%

54%

56%

58%

60%

62%

Jan Feb Mar

Booked Accountsvs. contro l group

5/21/2018 Vistex

12/40 SAP 2010 / Page 12

Agenda

Business Environment

Business Process

Solution Overview

Value Proposition

5/21/2018 Vistex

13/40 SAP 2010 / Page 13

Optimalrecommendation

Cross-/up-sell offers

Retention offers

Marketing messages

Next best action

Real-Time Decisioning

RTOMOffer information Offers and their values

Target population

Channels

Triggers and events

Real-time customer information

Real time customer profile

Previous customers responses

Real-time session information

Nature of the interaction

Agent skills

Level of service

5/21/2018 Vistex

14/40

Insights for business users

on offers, agents, channels

and responders

Recommendoptimal offers

Create & manageoffers portfolio

Learn and adaptMeasure and

provide insightsRTOMProcess

Simulation and Administration (part of RTOM Applications Toolkit)

Intuitive offer definition

and management

environment

Prioritized real-time

recommendations

RTOM Process and andscape

Automatic learning to

improve subsequent

recommendations

Offer Designer Recommendation Engine

BW / DWH

Interaction ChannelsCRM & other data sources

Integration Manager (part of RTOM Applications Toolkit)

Design Interaction Analysis

RTOM Analytics

and Dashboards

5/21/2018 Vistex

15/40 SAP 2010 / Page 15

Agenda

Business Environment

Business Process

Solution Overview

Value Proposition

5/21/2018 Vistex

16/40

Offer Definition

Eligibility

RulesPrerequisites

Validity Time Frame

Re-offer Policy

Targeting

CriteriaSpecific Target Profiles

Profiling Hypothesis

Personalized Reasoning

Description Short Description

Business Priority

Links to Products & Actions

Offer

5/21/2018 Vistex

17/40

6. Feedback

Other Data

Sources

BW / 3rdparty

DWH

5. Recommendations

Recommendation Engine

Customer Interaction Channels

CRM Master

Data

4

2. Events

Data Integration Services

Recommendation Services

The RTOM Landscape

Offer

Designer7. Experience

1

Product Catalog

3. Data retrieval

Web IC

Web Services

# Step

1Offers are defined in BLS and

saved in the RTOM engine

2Interaction application event

triggers RTOM

3RTOM retrieves data from

data sources

4The engine detects the

optimal offers

5Recommended offers are

provided to the application

6Recommendation result is

sent back to the engine

7Experience is extracted and

exported for Analytics

ExperienceOffersRTOM Analytics

Info

Providers

5/21/2018 Vistex

18/40

SAP Real-Time Offer Management

SAP 2010 / Page 18

Measure & Provide Insights (Analytics and Dashboards)

SAP Real-Time Offer Management Building Blocks

Web ChannelInteraction

Center

Customer

OfferPerformance

Self-Learning andOptimization

Response Detection& Capture

Response Analysis

Ranking & Profiling

Real-TimeDecisioning

Event Detection andProcessing

Real-Time DataAccess & Evaluation

Arbitration &Optimization

Interaction

Assistance

Next Best Action

Product Information

Suitability forDecision Support

Offer Portfolio

Management

Targeting

Product Selection

Business Goals &Prioritization

AgentPerformance

Customeranalytics

Channelanalytics

Branches andstores

ATM

LeadsAnalysis

Trending

IVR/CTI POS Mobile

Industry Solutions

Integration, Monitoring and Simulation Tools

5/21/2018 Vistex

19/40 SAP 2010 / Page 19

Offer Portfolio Management

Offer Portfolio

Management

Interaction

Assistance

Self Learning and

Optimization

Measure & Provide

Insights

The Offer Portfolio Management environment is a central offer

repository and management environment that enables the creation

and maintenance of inbound and outbound offers.

An offer is marketing object whose definition encompasses the following

Targeting define offer eligibility rules and target audience. Eligibility and targeting

criteria are defined in the form business rules or in the form of hypothesis

Product Selection associate the offer with a specific product(s) from the master

product catalog (including volume packages and bundles)

Business Goals associate the offer with one or more specific categories or

business goals (e.g. retention, end-of-year offers, volume benefits,)

Offer Prioritization define the offers business priority

Real-Time

Decisioning

5/21/2018 Vistex

20/40

Real-Time Offer ManagementRTOM Offers Design in Campaign Management

RTOM offers are campaign type that associates products and NextBest Actions to customers and interaction events

5/21/2018 Vistex

21/40

Linking Offers to Products in Catalog

Products and services are directly linked to offers

5/21/2018 Vistex

22/40 SAP 2010 / Page 22

Real-Time Decisioning

Offer Portfolio

Management

Interaction

Assistance

Self Learning and

Optimization

Measure & Provide

Insights

The Real-Time Decisioning engine recommends the best offers to acustomer, based on a wide range of considerations, in real time,during customer interactions.

Real-time data evaluation and calculations the engine analyzes various types ofdata in real-time; theme and events of the current interaction, relevant customerdata, agent skills, and more

Offer Arbitration the engine evaluates the available offers and filters outincompatible offers based on current session information, eligibility rules validity

period, agent skills, previous customer responses, etc.

Offer Optimizationthe engine priorities the offers that are suitable to the currentcustomer. The prioritization factors in the personal response estimation and thevalue of acceptance to the organization business goals

Real-Time

Decisioning

5/21/2018 Vistex

23/40

SAP EHP1 for SAP CRM 7.0RTOM Offer Details

Offers business goal

Target customer profiles

Offers triggering events

Offers eligibility rules

5/21/2018 Vistex

24/40 SAP 2010 / Page 24

Interaction Assistance

Offer Portfolio

Management

Interaction

Assistance

Self Learning and

Optimization

Measure & Provide

Insights

Interaction Assistance supports effective promotion of therecommended offers

Next Best Action guides the agent or customer to the most important next activity

Product Information provides the relevant description and link to the productcatalog

Personalized decision support provides customer specific information that isrelated to the suggested offer and the explains why this offer is recommended.

Real-Time

Decisioning

5/21/2018 Vistex

25/40

RTOM in the Interaction Center

SAP 2010 / Page 25

RTOM Recommendations

5/21/2018 Vistex

26/40

RTOM in a Web Shop (mock-up)

SAP 2010 / Page 26

RTOM Recommendations

5/21/2018 Vistex

27/40 SAP 2010 / Page 27

Self-Learning and Optimization

Offer Portfolio

Management

Interaction

Assistance

Self-Learning and

Optimization

Measure & Provide

Insights

The systems tracks and analyzes the actual customers responseswith the purpose to improve subsequent recommendations

Response Capture is a feedback mechanism that tracks the customer response

to offers and logs these into the experience database for further analysis

Response Analysis analyzes the experience database using statistical machinelearning algorithms and enables online adaptation of the different offer scores

Profiling and Scoring identifies responders profiles, fine-tunes the targetinghypothesis for each offer and scores its performance in the respective profiles

Real-Time

Decisioning

5/21/2018 Vistex

28/40

Targeting RTOM OffersRecipient Profiles

SAP 2010 / Page 28

Recipient profiles VIP customer andcustomers that have certain products

5/21/2018 Vistex

29/40

Targeting RTOM OffersRefining Recipient Profile by Self-Learning

RTOM will evaluate all combinations of profilinghypothesis (here 2 4 combinations)

5/21/2018 Vistex

30/40

Closed Loop MarketingLinking Outbound Campaigns to RTOM Offers

SAP 2010 / Page 30

Outbound campaigns are linked to offers and their targetgroup used for the RTOM offer

5/21/2018 Vistex

31/40

RTOM Recommendation StrategyIdentifying Specific Response Profiles

Profiling Hypothesis

PredictorNo Credit

LineFemale

Free

profession

61.1%

42.5%

15.8%

5%

Users, when defining an offer, can provide a targeting hypothesis regarding

customer characteristics that may impact acceptance ratios

Self-learning of the actual responses validates and fine-tunes these hypotheses

The algorithms also tackle real-time learning challenges such as stagnationavoidance, seasonal effects and changes in taste

Overdraft protection

Classification = Free profession

Gender = FemaleCredit line = falseGender = Female

5/21/2018 Vistex

32/40

Enhance the ability to manage and optimize the efficiency of online offering, allowing

control over offer effectiveness and agents performance

Offer performance analytics analyzes the performance of offers along with customer profiles,and interaction events over time.

Agent performance analytics analyzes the utilization of RTOM and the success of offering by

different agents, as well as the impact on productivity over time.

Customer analytics analyzes the response profiles of the various offers.

Channel analytics provides insights about the offer performance in different channels as well

as channel specific offering profitability.

RTOM AnalyticsFour Main Categories

SAP 2010 / Page 32

Offer Portfolio

Management

Interaction

AssistanceAdapt and Learn

Measure & Provide

Insights

Real-Time

Decisioning

5/21/2018 Vistex

33/40

RTOM AnalyticsManager and IC Manager Dashboards

Real-Time Offer Management Analyticsleverage the most recent NetWeaver BI

improvements and Business Objects

xCelsius Dashboards

RTOM analytics are available to the

IC Manager and Marketing

Professional SAP CRM roles

RTOM A li ti T lkit

5/21/2018 Vistex

34/40

SAP 2008 / SAP CRM Marketing Overview, Page 34

RTOM Applications Toolkit

Real-Time Offer Management is delivered with a Web-based applications toolkit that enables

system integrator to easily integrate and extend RTOM use to new landscape andapplications. The toolkit also provides business users with monitoring and simulation

facilities to efficiently improve their offering.

Web-based interface with guided procedures that enables business users to simulate,

control and improve offering

Session events processing, data sources and integration guided procedures enables fast

integration and extension for system integrators and partners

Monitoring tools enable IT professionals to control and manage RTOM deployment with

low TCO

RTOM

Tools

RTOM A li ti T lkit

5/21/2018 Vistex

35/40

RTOM Applications ToolkitIntegration Manager, Monitoring & Business Tools

Integration Managerprovides System Integrators guided

procedures GUI for expanding RTOM integration to new data

sources and for configuring the engine reaction to session events

Monitoring tools enable IT professionals to control and

manage RTOM deployment in runtime

Business tools enable business professionals to review and

simulate RTOM offers

Utiliti I d t S l ti

5/21/2018 Vistex

36/40

SAP 2008 / SAP CRM Marketing Overview, Page 36

Utilities Industry Solution

Real-Time Offer Management has a prebuilt integration with the SAP CRM_ISU solution for

Utilities, to deliver on customers demand for next best action recommendation

Utility-specific IC events extending the generic set that trigger RTOM, such as: Quotation /

Contract management interaction events and premise / service location related interaction

events

Utility-specific data objects extending the generic BP data and transactions exposed to

RTOM, such as: Contracts, Business Agreements, Premises, PODs and opened Quotations.

RTOM

IndustrySolution

C i ti I d t S l ti

5/21/2018 Vistex

37/40

SAP 2008 / SAP CRM Marketing Overview, Page 37

Communications Industry Solution

Real-Time Offer Management has a specific extension for the SAP Communications Solution

Out-of-the-box Integration with Business Partner contract data enhances RTOMrecommendations to support Telco business logic

Out-of-the-box Integration with the Telco IC provides real time recommendations during

interactions with Telco customers

Following order creation new relevant cross/up offers detected

Next Best Action Messages

RTOM

IndustrySolution

5/21/2018 Vistex

38/40

SAP 2010 / Page 38

Agenda

Business Environment

Business Process

Solution Overview

Value Proposition

Summary

5/21/2018 Vistex

39/40

Summary

The Value Proposition of RTOM

Recommends optimal and relevant offers

across multiple channels

Boosts conversion rates and increases

revenues and lifetime value

Provide business insights to control and

improve offering

Business users oriented environment with low

TCO

Takeawaythe Three Is of RTOM

Intuitive

Intelligent

Integrated

Cop right 2010 SAP AG

5/21/2018 Vistex

40/40

Copyright 2010 SAP AG

All Rights Reserved

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein

may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries,

eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+,

POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex,

MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Cor poration.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other

countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos

are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products andservices mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries.

Business Objects is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only.

National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only,

without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed

as constituting an additional warrant.