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Real-Time Offer Management

Detailed View
SAP Real-Time Offer Management 7.1
Detailed View

SAP 2010 / Page 2
SAP Real-Time Offer Management (RTOM)
RTOM enables organizations to conduct intelligent
and 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
SAP 2010 / Page 3
Business Environment
Business Process
Solution Overview
Value Proposition
Agenda
SAP 2010 / Page 4
Agenda
Business Environment
Business Process
Solution Overview
Value Proposition
Bottom line: Need for real time decision support during inetarctions
The Business Environment
Customer and Product Perspectives
Facilitate
Offering
Personalize
Interactions
Growing PRODUCT complexity
Consolidation, collaboration and virtualization result
in rich and complex product portfolios over
frequently fragmented business supporting systems
High CUSTOMER expectations
Demand for relevant information and consistent
experience across the enterprise and its channels
Market Attractiveness
Analysts 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 a
view 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

CRM Marketing Hype Cycle 2009
Market Attractiveness
Real Time Decisioning - a key technology!
Analytic Applications Hype Cycle 2009
Context Aware Computing Hype Cycle 2009
CRM Service Hype Cycle 2009
RTOM recommends in real-time products and 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-Time
Decisioning Engine
Offer Management
Environment
Self-Learning
and Analytics
Solution Foundations
Recommend
optimal offers
Create & manage
offers portfolio
Learn and adapt
Measure and
provide insights
RTOM
Process
Key Capabilities
Multi-channel recommendation engine supporting closed-loop Marketing
Real-time data access and calculation available for decision support
Recommendations provided with personalized reasoning to 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
Openness for third-party / legacy integration
High performance and scalability
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
SAP 2010 / Page 11
One of the top ten largest financial
services holding companies in the
United States

Business challenges
Complex offering the bank manages a comprehensive offering
environment: banking, brokerage, insurance, investment, mortgage, trust
and 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 you Service available 24 hours a day, 7 days a
week; 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. Bank
Increased Inbound Sales by 60%
52%
57%
60%
48%
50%
52%
54%
56%
58%
60%
62%
Jan Feb Mar
Booked Accounts
vs. control group
SAP 2010 / Page 12
Agenda
Business Environment
Business Process
Solution Overview
Value Proposition
SAP 2010 / Page 13
Optimal
recommendation
Cross-/up-sell offers
Retention offers
Marketing messages
Next best action
Real-Time Decisioning
RTOM
Offer 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
Insights for business users
on offers, agents, channels
and responders
Recommend
optimal offers
Create & manage
offers portfolio
Learn and adapt
Measure and
provide insights
RTOM
Process
Simulation and Administration (part of RTOM Applications Toolkit)
Intuitive offer definition
and management
environment
Prioritized real-time
recommendations
RTOM Process and Landscape
Automatic learning to
improve subsequent
recommendations
Offer Designer Recommendation Engine




BW / DWH
Interaction Channels CRM & other data sources
Integration Manager (part of RTOM Applications Toolkit)
Design Interaction Analysis
RTOM Analytics
and Dashboards
SAP 2010 / Page 15
Agenda
Business Environment
Business Process
Solution Overview
Value Proposition
Offer Definition
Eligibility
Rules
Prerequisites
Validity Time Frame
Re-offer Policy
Targeting
Criteria
Specific Target Profiles

Profiling Hypothesis

Personalized Reasoning


Description Short Description
Business Priority
Links to Products & Actions

Offer
6. Feedback
Other Data
Sources
BW / 3
rd
party
DWH
5. Recommendations

Recommendation Engine

Customer Interaction Channels
CRM Master
Data
4
2. Events
Data Integration Services
Recommendation Services
The RTOM Landscape
Offer
Designer
7. Experience
1
Product Catalog
3. Data retrieval
Web IC
Web Services
# Step
1
Offers are defined in BLS and
saved in the RTOM engine
2
Interaction application event
triggers RTOM
3
RTOM retrieves data from
data sources
4
The engine detects the
optimal offers
5
Recommended offers are
provided to the application
6
Recommendation result is
sent back to the engine
7
Experience is extracted and
exported for Analytics
Experience
Offers
RTOM Analytics
Info
Providers
SAP Real-Time Offer Management









SAP 2010 / Page 18
Measure & Provide Insights (Analytics and Dashboards)
SAP Real-Time Offer Management Building Blocks
Web Channel
Interaction
Center
Customer
Offer
Performance
Self-Learning and
Optimization
Response Detection
& Capture
Response Analysis
Ranking & Profiling
Real-Time
Decisioning
Event Detection and
Processing
Real-Time Data
Access & Evaluation
Arbitration &
Optimization
Interaction
Assistance
Next Best Action
Product Information
Suitability for
Decision Support
Offer Portfolio
Management
Targeting
Product Selection
Business Goals &
Prioritization
Agent
Performance
Customer
analytics
Channel
analytics
Branches and
stores
ATM
Leads
Analysis
Trending
IVR/CTI POS Mobile
Industry Solutions
Integration, Monitoring and Simulation Tools
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
Real-Time Offer Management
RTOM Offers Design in Campaign Management
RTOM offers are campaign type that associates products and Next
Best Actions to customers and interaction events
Linking Offers to Products in Catalog
Products and services are directly linked to offers
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 a
customer, based on a wide range of considerations, in real time,
during customer interactions.

Real-time data evaluation and calculations the engine analyzes various types of
data in real-time; theme and events of the current interaction, relevant customer
data, agent skills, and more
Offer Arbitration the engine evaluates the available offers and filters out
incompatible offers based on current session information, eligibility rules validity
period, agent skills, previous customer responses, etc.
Offer Optimization the engine priorities the offers that are suitable to the current
customer. The prioritization factors in the personal response estimation and the
value of acceptance to the organization business goals
Real-Time
Decisioning
SAP EHP1 for SAP CRM 7.0
RTOM Offer Details
Offers business goal
Target customer profiles
Offers triggering events
Offers eligibility rules
SAP 2010 / Page 24
Interaction Assistance
Offer Portfolio
Management
Interaction
Assistance
Self Learning and
Optimization
Measure & Provide
Insights
Interaction Assistance supports effective promotion of the
recommended 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 product
catalog
Personalized decision support provides customer specific information that is
related to the suggested offer and the explains why this offer is recommended.
Real-Time
Decisioning
RTOM in the Interaction Center

SAP 2010 / Page 25
RTOM Recommendations
RTOM in a Web Shop (mock-up)
SAP 2010 / Page 26
RTOM Recommendations
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 responses
with 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 machine
learning algorithms and enables online adaptation of the different offer scores
Profiling and Scoring identifies responders profiles, fine-tunes the targeting
hypothesis for each offer and scores its performance in the respective profiles
Real-Time
Decisioning
Targeting RTOM Offers
Recipient Profiles
SAP 2010 / Page 28
Recipient profiles VIP customer and
customers that have certain products
Targeting RTOM Offers
Refining Recipient Profile by Self-Learning
RTOM will evaluate all combinations of profiling
hypothesis (here 2 4 combinations)
Closed Loop Marketing
Linking Outbound Campaigns to RTOM Offers
SAP 2010 / Page 30
Outbound campaigns are linked to offers and their target
group used for the RTOM offer
RTOM Recommendation Strategy
Identifying Specific Response Profiles

Profiling Hypothesis
Predictor
No Credit
Line
Female
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 stagnation
avoidance, seasonal effects and changes in taste
Overdraft protection
Classification = Free profession
Gender = Female
Credit line = false Gender = Female
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 Analytics
Four Main Categories

SAP 2010 / Page 32
Offer Portfolio
Management
Interaction
Assistance
Adapt and Learn
Measure & Provide
Insights
Real-Time
Decisioning
RTOM Analytics
Manager and IC Manager Dashboards
Real-Time Offer Management Analytics
leverage 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
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 and
applications. 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 Applications Toolkit
Integration Manager, Monitoring & Business Tools
Integration Manager provides 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
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
Industry
Solution
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 RTOM
recommendations 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
Industry
Solution
SAP 2010 / Page 38
Agenda
Business Environment
Business Process
Solution Overview
Value Proposition
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



Takeaway the Three Is of RTOM
Intuitive
Intelligent
Integrated

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