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The Big Picture: Learned Behaviors in Churn

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The Big Picture webinar series explores how industries define their strategies for understanding their consumers better using data. From issuing better healthcare to smarter product and services recommendations, data is the fueling foundation for success. Cloudera is a modern platform that gives analytic access to users that need to understand their customers across multiple touch points and multiple enterprise systems. Cloudera not only unlocks the promise of true customer 360 but it also leverages advanced capabilities for data science and machine learning.
In this webinar, we take a look at how data scientists can leverage Cloudera to identify and predict a common customer loyalty use case in telecommunications. We will explore the data, design our features, and then leverage Apache Spark to help us make some predictions on the accuracy of our finding. All within a secure and collaborative environments utilizing the Cloudera Data Science Workbench.

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The Big Picture: Learned Behaviors in Churn

  1. 1. 1© Cloudera, Inc. All rights reserved. Learned behaviors in churn SeanAnderson, Solutions Marketing Amy O’Connor, Big Data Evangelist
  2. 2. 2© Cloudera, Inc. All rights reserved. The Big Picture Webinar Series Exploring trends in customer intelligence and machine learning
  3. 3. 3© Cloudera, Inc. All rights reserved. Know Your Customer - Solutions • Marketing Systems (Salesforce, Omniture, CRM) • Clickstream Data Primary Data Source • Clickstream • NPS Systems • Support Call Logs • Social Feeds Primary Data Source Understand Your Customer Learn Behaviors Improve Interactions • Shopping Cart Platforms • Geolocation Primary Data Source
  4. 4. 4© Cloudera, Inc. All rights reserved. Customer Churn Analytics is proactively and predictably figuring out when a customer would churn or has a high probability of churning. Customer Churn Analytics
  5. 5. 5© Cloudera, Inc. All rights reserved. Fourth Industrial Revolution brings both unprecedented opportunity and an accelerated speed of change1 Acquiring new customers can cost five times more than satisfying and retaining current customers2 1. World Economic Forum, Global Competitiveness Report 2016-2017 2. Alan E. Webber, "B2B Customer Experience Priorities In An Economic Downturn: Key Customer Usability Initiatives In A Soft Economy
  6. 6. 6© Cloudera, Inc. All rights reserved. Customers view interactions as a relationship PROCESS PRODUCT Speed OTT Media Device… PROMOTION Cross-sell offers Discounts Contracts… PACKAGING Bundles Household Data/Media… Order Installation Billing… PEOPLE Field technicians Care center Retail employees… PLACE/CHANNEL Mobile / Web Retail outlet Care center… PRICE Fixed Usage based pre/post paid…
  7. 7. 7© Cloudera, Inc. All rights reserved. Impact of traditional churn analytics Multi-channel interactions are materially worse than single-channel, whether digital or not McKinsey2015EUTelecomSurvey
  8. 8. 8© Cloudera, Inc. All rights reserved. Traditional Segmentation • Age • Gender • Average Spend • Price Plans • Usage history • Data, Voice, Text • Billing history • Device Upgrade • Age • Gender • Average Spend • Price Plans • Usage history • Data, Voice, Text • Billing history • Device Upgrade • Location • Social Influence • Applications Used • Content Preferences • Usage Details • Roaming Analysis • Travel Patterns • Device History • Other products/ services • Bundling preferences • Offer history • Campaign Adoption History • Call center Tickets • QoS History • Household Analysis • Lifetime Value • Churn Score • Clickstream Info • Channel Preferences • Survey Dynamic Micro- Segmentation From static to dynamic, real-time micro-segmentation…
  9. 9. 9© Cloudera, Inc. All rights reserved. To meet customer experience expectations Personalized to reflect preferences and aspirations Relevant in the moment to customer’s needs and expectations Consistent across all channels, brands, and devices Contextualized to present location and circumstances
  10. 10. 10© Cloudera, Inc. All rights reserved. Batch or High Latency Segment- or Cohort-Based Limited Analytic Options Supports Research Real-Time and Immediate Individual User-Based Operational Analytics Actionable Insights Legacy Approach Current Demands Reports and Summaries Granular and Ad Hoc Using more data & advanced analytics
  11. 11. 11© Cloudera, Inc. All rights reserved. What Happened? • Reporting on siloed data • Monitoring and being reactive Why did churn happen? • Simple analysis on 2-3 data sources yielding limited segmentation • Prescriptive response When will Customer Churn? • Use of all data sources • Predictive and deeper insights through predictive modelling, machine learning • Proactive response BusinessValue REACTIVE PROACTIVE Most organizations employ a combination of these Approaches to customer churn analytics
  12. 12. 12© Cloudera, Inc. All rights reserved. BI Solutions Real-Time AppsSearch EDWDiscover Machine Learning Customer Data Internal Systems External Sources Only with Cloudera: Analytics for customer churn
  13. 13. 13© Cloudera, Inc. All rights reserved. BI Solutions Real-Time AppsSearch EDWDiscover Machine Learning Customer Data Internal Systems External Sources Only with Cloudera: Analytics for customer churn Spark Streaming Leadership in Spark Integrated with EDH Flexible Storage Store any and all Data. Kudu - Fast Analytics on Fast Data Real-Time Data Processing Streaming Ingest Kafka & Flume - Real-Time Data Ingest for streaming, high volume data Deployment Flexibility Data Security Four pillars of security: Perimeter, Access, Visibility, and Data + Record Service Centralized Mgmt. Cloudera Manager for centralized cluster management Manage Multiple Clusters – On Premise or Cloud environment - On Premise or Cloud
  14. 14. 14© Cloudera, Inc. All rights reserved. Manage Data Growth & Derive new insights on customers Challenge: • 100% Data growth annually, 110 data sources • Derive new analytical insights on customers & network usage Solution & Impacts: • Deployed key Customer 360 use cases – Campaign optimization (DPI), churn analytics, social churn & lifetime value analytics • 1 campaign – InApp purchases - netted 1% uplift in revenue TELECOMMUNICATIONS » DRIVE CUSTOMER INSIGHTS
  15. 15. 15© Cloudera, Inc. All rights reserved. TELECOMMUNICATIONS » CUSTOMER 360° » DATA INTEGRATION » BETTER CUSTOMER SERVICE » JOURNEY ANALYTICS 360° View To Optimize Customer Journey • Billions of events generated every day • Needed to bring together multi- structured data from new sources and multiple channels • Optimize customer journey • Centralized, real-time 360 degree customer view that spans many devices and data sources • Improved Data warehouse performance – Life extended up to 3X times
  16. 16. 16© Cloudera, Inc. All rights reserved. Customer Churn at Cloudera Identify key behaviors for churn and sentiment
  17. 17. 17© Cloudera, Inc. All rights reserved. Cloudera – Key Enabling Capabilities Ideal for real-time analytics on IoT and time series data. Simplifies Lambda architectures for running real-time analytics on streaming data Leading analytic SQL engine running natively in Hadoop. Impala provides the fastest insights, at high-concurrency, with the familiar access necessary for powering BI and analytics across the business. Kudu: Real-Time Offers Impala: Self Service BI Data Science Workbench Collaborative hub for enterprise data science and an integrated development environment for running Python, R, & Scala with support for Spark
  18. 18. 18© Cloudera, Inc. All rights reserved. Impala: The Analytic Database for Hadoop
  19. 19. 19© Cloudera, Inc. All rights reserved. Introducing Cloudera Data Science Workbench Self-servicedata science for the enterprise Accelerates data science from development to production with: • Secure self-service environments for data scientists to work against Cloudera clusters • Support for Python, R, and Scala, plus project dependency isolation for multiple library versions • Workflow automation, version control, collaboration and sharing
  20. 20. 20© Cloudera, Inc. All rights reserved. Telco Use Case Demo Featuring The Data Science Workbench
  21. 21. 21© Cloudera, Inc. All rights reserved. Thank you

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