IntelligentCustomerEngagement?SuiteRightCommunicationoftheRightProducttotheRightCustomerattheRightTimethroughtheRightChannelPizzahut–Day1Workshop16thOCT20142PM–2:30PMBriefChatonexistingBusinessAnalyticsChallengesQuickoverviewofPHsolutionofferingsprovidedGlobally2:30PM–4PMDatabaseManagement/ProcessesatCapillaryDataCleansing&HygieneMethodologies4PM–6PMFindingCustomerInsights&understandingthePizzaHutCustomerprofiles/segmentsCreatingapersonalizedexperienceusingSegmentation&PredictivemodellingQ&AWorkshopAgenda–Day1PrivateandConfidential10/24/20243ServiceOfferingstoPHGloballyServicesPHSingaporePHIndiaPHAustraliaCustomerSegmentation

CampaignManagement

MultipleAttributePersonalisation

MenuOptimization/ProductMix

CampaignMetricsElevation

DirectMailerOptimization

VIPProgram

CustomerLifecycleImplementation

SocialMediaCampaign

IntelligentCustomerEngagement?SuiteRightCommunicationoftheRightProducttotheRightCustomerattheRightTimethroughtheRightChannelDatabaseManagementCleansing&HygieneDataFlow&FeaturesCustomerSegmentationPredictiveAnalyticsInteractiveVisualizationCustomerInsightsSFTPorOtherSourceValidation/Transformation/CleansingScalableArchitectureMarketingDataWarehouseHadoopHorizontallyScalableCloudFastProcessingIntegratedR/OtherStatisticalToolsBigDataStackBusinessIntelligencePHDataIntelligentdecisionsQuick&QualityInsightsAlldatacollatedatoneplaceCapillaryTechnologySystemETLDataCollationDataAugmentationDataAttributes&MonetizationStrategyExecution3rdPartyDataMultiChannelTransactionsInventoryStoreDetailsFeedbackStoreLocationsDemographicsCleaningInventoryDeDupOutlierTreatmentRemoveInvalidEmail/MobilePinCode&AddressStoreLocationACORNProfilingMarketingDataWarehouseCustomerBasedPreferenceBasedComm.BasedCampaignExecutionLoyaltyProgramPrescriptiveModellingMenuOptimizationMarketMixModellingLifeCycleMarketingOrderGroupSizesCombo/a-la-carteBehaviourWhyLocationWhereProductWhatCustomerInfoSubscriptionInfoTransactionsBuyingPreferences&AttitudesPerceptions&SatisfactionProfitability&PotentialTransactDataCallCenterECommerceMobileSocialSegmentationProfilingPlanningStagnantDatatoDecisionBasedMarketingdriventhroughDataPrivateandConfidential10/24/20247DataHygiene:Snapshotof5-stepprocessStandardizeCleanseValidateDataTransformationBestETLPractiseEnrich/Integrate/AutomateAnyDemographicsPostalStandardsDe-dupeRe-parentChildRecordsAccount:Franchisee,Location,StoreValidate&ModifyLoadtoProductionStoreNamesMarina,SGP->Marina-SingaporeFind&ReplaceHotHigh

MedPizzaMediumPizzaIdentify,Match&ScoreJ.Smith,JohnSmith–80%CompanyName&AddressUS,U.S,U.S.A->USAAddressesBillID:Store-Date-BillDataConventionsMergeJ.Smith,JohnSmith->JohnSmithYear,QuarterMonth,Week,DayHierarchyDataNameAddressSectorPostalCodePhoneEmailStephenS.83JlnTunRazakKl5540006222-8511

StephenSim83JlnTunRaz540006222851162228511AngLee54000

StandardizeandcompletemissingaddressApplystandardizedfieldformattingSourcedatacleanupApplystandarddataValidationDATAQUALITYMAINTAINEDATALLTIMESUsecombinationofname,address,andemailtomatchmultiplecustomerrecordsDataCleaningensuresValidityAccuracyCompletenessConsistencyUniformity360viewofacustomer–SingleViewTransactionMenu360ViewofcustomerAttributesDetailsCustomerfirstorderedon1Jan’14.VIPcustomerofageabout35yrs(Familyof4)&Guestchequevalueisalwaysabove$55,preferstoorderonweekendsduringdinnertime.PrefertoreceivethecommunicationsoverE-Mail&Mailers(butnotText)“Thecustomerordered$80forhomedeliverythroughthecallcenteron12Oct2014@10:15PM““Thecustomerordered3Reg.Pizzas(extratoppings),2Breadand3Drinks“Feedback(ServiceSenstivity)Customerisamalewithageof35withafamilyof4,wholovesmeatProductdetailslikesize,price,Department,categoryetc.,ThecustomerlovePizzahut,thoughhisPizzagetsdeliveredlatefewofthetimesDemographics(IncludingThirdpartysources)CustomerLocationClickedonatleast50%oftheE-MailsentLocationsBehavioralfactorsMenuSensitivityOneViewforAllSingleViewImplementation–EmpoweringtheAssociatesPoweredbyCapillaryANALYTICSDrivenby3rdPARTYDataDrivenbyPHMARKETINGIntelligentCustomerEngagement?SuiteRightCommunicationoftheRightProducttotheRightCustomerattheRightTimethroughtheRightChannelCustomerInsightsPrivateandConfidential10/24/202412UnderstandingtheCustomerproductorderBehaviorCustomerproductpreferencesGroupSize–SurrogatevariableforFamilysizeCustomers(withlargefamilysizeorpartyorder)prefertoorderofflineThereisahugecross-sellingopportunitywiththe8%customerswhoorderonlyPizza(NocomboorNoSideorder)Insight#1–CustomertendtosticktotheirtimeoforderpreferencesHaveatimepreferenceasDinner&madenextorderduringDinnertimeHaveatimepreferenceasLunch&madenextorderduringLunchtime74%ofthecustomerswithtimepreferenceasaDinnerorderedforDinneragainintheirnextorder69%ofthecustomerswithtimepreferenceasaLunchorderedforLunchagainintheirnextorderInsight#2–CustomertendtosticktotheirdayoforderpreferencesHaveadaypreferenceasWeekday&madenextorderduringWeekdayHaveadayorderasWeekend&madenextorderduringWeekend67%ofthecustomerswithdaypreferenceasaWeekday,orderedduringWeekdayduringtheirnextorder64%ofthecustomerswithdaypreferenceasaWeekend,orderedduringWeekendduringtheirnextorderIntelligentCustomerEngagement?SuiteRightCommunicationoftheRightProducttotheRightCustomerattheRightTimethroughtheRightChannelCustomerSegmentationRe-definingtheJourneyofPHLoyalCustomerNewCustomerAcquireActiveCustomerUpgradeReward&NurtureLoyalCustomerWinBackInactiveCustomer(Lapsed)PreventWinBackPreventInactiveCustomer(Dormant)*SegmentdefinitionsarecoveredinthelaterstageofpresentationTypesofSegmentations–ActiveCustomersSegmentationBehavorialRecency/BillValueModelFM/RFMModel*Multi-VariateGeographicZipCodeSectorCity*RFMSegmentsissimilartoHeavy,Medium&LightUserSegmentsATTRIBUTESExtrapolatedAttributesCommunicationTagsPreferenceTagsSegmentationTagsfirst_purchase_datetest_control_flagchannel_prefbeh_cluster_idlast_purchase_dateopt_in_out_statusweekday_end_preftaste_cluster_idfirst_purchase_storesms_eligiblelunch_dinner_prefactivity_segmentlast_purchase_storeemail_eligiblefav_daycustomer_tagno_of_transactionsdnc_statusfav_sectordm_group_noavg_transaction_valueNDNC_smsfav_storebills_tagrepeat_transactionsNDNC_emailprod_favabv_tagper_repeat_transactionsmob_flagprod_fav_descrfm_tagrecencyundelivered_flagprod_fav_cat_descopen_bandingfrequencyspent_per_skuavg_group_size_taglife_time_purchase

per_sides_tagcustomer_ranking

delivery_takeaway_prefno_of_visitsnormalized_visitsonline_fpddiscount_perExtrapolatedAttributesarebasicattributesusedtotrackindividualcustomerperformance.NormalizedattributesarealsocreatedfromthebasicformofAttributes(wherevernecessary)Segmentationtagsarecreatedbasedoncustomerbehaviorandusedtoidentifydifferentcustomersegments.LifetimeSpend%discountbillsAvgPriceperPizzaLatencyNormalizedFrequencySegmentationMethodology120+variablesthatimpactpurchasebehaviorHighimpactvariablesKMeansMethodologySignificanceDrinkPreferenceABVCumulativeSpendSpendperVisit%DiscountLatencyGroupSizeAvgPriceperPizzaPrivateandConfidential10/24/202420BehaviorSegments-OverviewHavehighestlifetimepurchasevalueMakevisitsmorefrequentlythantheentirebaseMostlycomesinagroupof3ormorePrefertopurchaseduringpromotionsHighLoyalC1HighDollarC3ValueConsciousC4PHFollowerC2HavethehighestspendpervisitVisitataverylowfrequencyPreferstocomeinlargergroupsHavealowlifetimepurchasevalueVisitsmostfrequentlythantheentirebasemakingthisbestfrequencysegmentHaveahighlifetimepurchasevaluePreferstocomeinsmallergroupsHaslowaveragespendpervisitthanthewholecustomerbaseHavethelowestspendpervisitVisitatalowfrequencyPreferstocomeinagroupof2ormoreHavealowlifetimepurchasevalueExampleofBehaviorSegmentsmendation:Bytargetingthesecustomerswithnewproductlaunchesensurethesecustomersbuildyourbrandingexercisethrough“WordofMouth”FeedbackfromthisgroupisveryimportanttobuildLoyalty.EnsuretheProduct&servicesaredeliveredeffectivelytothisgroup.HighLoyalRegularBuyers

C1HighLoyal–CampaignProposalRemainingcustomersareunclassifiedTasteClusters-OverviewPrivateandConfidential10/24/202424RepeatPizzaBuyersC1ComboLoversC3MenuMinersC4PizzaGourmetsC2LovetodosideordersalongwithPizzas(Ex:2Pizza+1Pastalasttimeconvertsto2Pizza+1drink+1Garlicbread)Alwaysprefertobuycombosratherthanala-carteKeepontryingdifferentcombinationswithbothpizzas&sideorders

KeepontryingDifferentCombinationsofpizzasandsideorders(Ex:Ordered2Pizzaslasttime,thistimetheyordered2Pizzas+1Pasta)HighersalescontributionfromPizzas&arealwayssearchingforsomethingnewSticktothesamecombinationoforder(Ex:1Pizza+1Pastainalltheorders)butkeepsontreatingtheirtastepalettewithanewdishPreferstoordermoreofsideordersandothervarietiesratherthanpizzaPicksthesamepizzaeverytime

Stickstosamecombination&sameqty(TypicallyOrders2Pizzas&0SideOrder)LessSideOrders&HighSalesContributionfromPizzasExampleofTasteSegmentsPizzaGourmetsmendation:TargetcustomerswiththeirFavouritepizzatohavealargerinfluenceontheircampaignresponserate&eventuallyincreaseyearlyfrequencyPizzaGourmetsC1RepeatPizzaBuyer–CampaignProposalBreakingitfurtherintosmallerMicroClustersDifferentiatedonBehavioralParametersDifferentiatedonTaste

ParametersHighLoyalPHFollowerHighDollarsRepeatPizzaBuyersMenuMinersComboLoversPizzaGourmetsValueConscious16.2%10.9%6.6%12.0%5.3%1.7%10.4%7.7%3.8%2.6%4.9%7.3%1.8%6.4%0.2%2.1%24.2.%12.7%5.7%7.1%5.9%1.1%8.4%3.5%4.9%2.0%4.5%3.9%4.3%9.6%0.4%1.7%Customers-45.8%Sales-49.7%Customers-25.1%Sales-18.9%Customers-18.6%Sales-15.4%Customers-10.5%Sales-16.0%Customers-27.2%Sales-39.3%Customers-21.6%Sales-25.4%Customers-22.2%Sales-19.0%Customers-29.0%Sales-16.2%HighLoyal–RepeatPizzaBuyerObservations:11%higherspendpervisitEat1sideorderlessforthesamenumberofpizzas41%higherGroupSizeMainlyorderRegularPizzasABVBandingmendation:Nurturethem&providegoodrewardsastheyarerepresentativeofyour“WordofMouth”marketingchannel.Targetthisgroupwiththeirfavoritepizzatoattractthem&increasetheirfrequency.PizzaSizeBandingPHOfferDesigningApproachApproach:ExistingOffersRightMicro-segmentGroupFindingouttherightmicro-segmentgroupbasedontheexistingofferstostreamline&makethecommunicationprocesseffectiveOfferDesignsatMicroClusterLevel

HighLoyalPHFollowersHighDollarsValueConsciousRepeatPizzaBuyersTryyourfavouritepizza&getournewbreadsticksfreeBillswithmorethan30$,canclaimupto10$discountBuy3Pizzas@10$eachGetaPanpizzafreeonanyOrderPizzaGourmetsBuy2Pizzas@10$eachGetRegularPizzafreewithanyorderBuy2LargePizzas@30$GetaPanpizzafreeonanyOrderComboLoversSpicyDrumletsFreeonanyorderBuy1Pizza&getanysideorderfreeBuy3RegPizzasor2LargePizzas@30$&GetaSpicyDrumletsfreeHoneyRoastedwingsfreeMenuMinersBuy2Pizzas&getany2sideordersfreeHoneyroastedwingsfreeHotchickenwingsfreeonanyorderBuy1Pizza&getanysideorderfreePrivateandConfidential10/24/202430DerivedfromDataFavouriteProduct:SeafoodSymphonyGroupSize:2Prefersweekenddeliveryafter6pmPrefersSMSmorethanEmailDidn’tmadeapurchaseinlast90daysInsightsgatheredafterobservingcustomerduringhis/herpastvisitsAvailableOffers

Feastfor2at$27(1MediumPizza+1sideorder+1coke)Feastfor4at$49(2MediumPizza+2sideorder+2coke)Buy2Largepizzasandget6pcsofSpicyDrumletsfreeGet3Largepizzasfor$48Objective:Toprovidethecustomerwiththerightofferatrighttimethroughrightchannel.Approach:Basedoncustomercharacteristics,systemselectsthebestofferforcustomerfromthepoolofavailableoffersandgeneratesappropriateSMStextExecution:SMStexteg.:“PizzaHutmissesyouMr.John.Partywithusandget1PrawnPizza,GarlicBread/ChocpopsandCokefor$26.99”IloveapizzawithprawntoppingIliketostayinwithmyfamilyof2andhavepizzaonFridayeveningsIliketoreceivecouponsthroughSMSchannelPersonalizedExperienceAngLeeIntelligentCustomerEngagement?SuiteRightCommunicationoftheRightProducttotheRightCustomerattheRightTimethroughtheRightChannelStatisticalModel–ImplementationforPHUseofStatisticalModelsPastCustomerBehaviorBuild

ModelValidationandTestFindProbabilityIndexofCustomers.....HighestProbabilityLowestProbab