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Bridging the data gapFlashpoint in the insurance industryAnalytics-aidedpersonalizationReal one-to-one personalization is finallywithin reach. Here are the high points.1 Flashpoint Analytics-aided personalizationAnalytics-aided personalizationBy now, we’re all familiar with the old“right message, right person, right time”formula—the holy grail of targeting. Ifanything, we’ve heard it so many timesit may as well be meaningless. But inthe arenas of technology, media, andtelecommunications (not to mentionthe broader business world), it’s an ideathat is enjoying a major resurgence ascompanies begin to make use of a bevyof new tools, most of which build on orextend analytics capabilities.For these companies, it’s aboutpersonalization—communicatingnot with micro-audiences whoshare interests and demographiccharacteristics, but with individuals,on their terms.Ten years ago, it was a good idea.Today, it’s actually possible—at scale.If you’re looking to ramp up yourpersonalization abilities, here aresome of the hotspots you’ll needto know about.In this issue• Apps• Machine learning• Data ManagementPlatforms (DMPs)• Event-driven communicationsAbout FlashpointsEvery day brings new ideas andpossibilities to the Technology,Media, and Telecommunicationssectors. Flashpoints is your toolfor gaining the context you needto make sense of these criticaldevelopments—as they emerge.2 Flashpoint Analytics-aided personalizationKey considerationsAppsApps are used to serve upcontent— but they’re alsoengines of data.Machine learningAnalytics and automationare being used to give yourpeople the insights theyneed to make smarterjudgments on the spot.Data ManagementPlatforms (DMPs)Data management platformsaren’t just plumbing. Theydeserve to be understoodand used by a wider rangeof executive stakeholders.Event-drivencommunicationsIf you wait for batch dataanalysis to drive decisions,you’re probably too late.You can be more nimble.Hot topics on the road to personalization3 Flashpoint Analytics-aided personalizationAppsPlanet of the appsContent is still king—enabledby apps. We’ve always hadthe ability to develop specific, microtargeted content, but haven’t hadthe means to deliver it in an equallytargeted way.Marketers in tech, media, telecom areincreasingly relying on apps specific toindividual products or media properties,allowing consumers to self-selectbased on narrow (but often deep)interests. That’s when things get reallyinteresting. Because now the companyhas the benefit of hard data—datathat can be used to better understandpurchasing patterns and behaviors atthe personal level. This information canfeed decisions at the macro level, butit can also be used to deliver perfectlytimed offers to individual consumers.Apps are used to serve upcontent—but they’re alsoengines of data.4 Flashpoint Analytics-aided personalizationMachine learningAnalytics and automationare being used to give yourpeople the insights they needto make smarter judgmentson the spot.Think in real time,act in real timeIf a high-value customerhas a specific problem, or is primed tobuy a specific product, do you knowabout it? When? More important, doyour people know what to do for thatcustomer? Can they take the right actionin time to actually make a difference?Unfortunately, the answer to thesesimple questions is often “no,” becausethe capabilities and connectedness thatneed to be in place to competentlyanswer them are anything but simple.It takes an ability to make sense ofmassive data sets, often held in differentplaces, within moments, for starters.Of course, now we can actually do thatwith analytics and big data tools. Butthat’s just the beginning. Those insightsaren’t worth much without a teamthat knows how to act on them, andthat’s where machine learning comesin. In a machine learning environment,delivering insights to humans occursinstantly, in an automated fashion.Imagine a mainframe with a directconnection to the synapses in the brainsof your sales or service teams. Thepeople on the front lines are able tomake smarter judgments on the spot,aided by machine-generated insights.That’s machine learning—and that’s realpower from customer analytics.5 Flashpoint Analytics-aided personalizationData Management PlatformsUnder the hoodData ManagementPlatforms (DMPs) areplaying an increasingly large role inpersonalization—and for that reasonalone, they shouldn’t be condemnedto the darkest recesses of the ITdepartment. Why do they deserve thespotlight? Let us count the reasons.First, these centralized computingpowerhouses are able to combine awide range of information types froman equally wide range of sources,structured and unstructured, online andoffline, mobile and ERP-generated, youname it. It doesn’t just make differentdata types compatible, either. DMPsare also able to apply analytics to thedata to get insights. And DMPs do it allin re

al time, so they can inform currentdecisions. While many tech, media,telecom companies have DMPs in placealready, most have only scratched thesurface of their potential.Data management platformsaren’t just plumbing. Theydeserve to be understoodand used by a wider rangeof executive stakeholders.6 Flashpoint Analytics-aided personalizationEvent-driven communicationsReal-time insightsand actionsBusiness solutions areincreasingly designed to send data toone another as events, in small bursts ofinformation. These events unfold in realtime and contain a small subsection ofinformation about customers and theirinteractions with the organization—powerful stuff. Marketers don’t have tosit and wait to analyze large batch datajobs in order to mine information abouta single customer so that they can thensend a personalized offer. In an eventbased context, they can use currentinsights to trigger a real-time analysisof consumer needs, combine thatinformation with large, historical datasets, and then send relevant, contextualmessages in real time.Consider a telecom customer who’s justexceeded her data usage for the thirdmonth in a row—a meaningful event.Using that information, marketing systemscan analyze her personal data usageand recommend a personalized newrate plan and service to reduce overalldata usage costs, as well as offer valueadded services based on her needs.Even better, her rate plan is automaticallyupgraded for free on a trial basis. She’snotified of the upgrade from an app orSMS, based on her preferences. A monthlater, she receives a follow-up messagethat highlights her resulting cost savings,along with an offer code for a permanentupgrade. All as the result of one event,identified and acted on at the right time.If you wait for batch dataanalysis to drive decisions,you’re probably too late.You can be more nimble.7 Flashpoint Analytics-aided personalizationBringing it all togetherReal one-to-one personalizationis increasingly within reach withthese elements in place. Apps Machine learning Data ManagementPlatforms (DMPs)Event-drivencommunicationsIn actionPersona identification and activationWhile any of these capabilities arecompelling in their own right, imaginehow they could combine to createa breakout experience for individualconsumers, rooted in a superiorunderstanding of personas.DMPs play a big role in twodifferent ways. First, they’re able toscour a wide range of data sources toinform the development of sharper,more nuanced personas. Second, thosesame DMP capabilities make it possibleto identify individual consumers—say,a middle-aged father, Scott, who justtweeted that he rode a media propertythemed rollercoaster with his daughter10 times in a single day.Imagine combining that insight with theknowledge that he doesn’t currentlyown the movie title on which therollercoaster is based. Now, you’re ableto push personalized content and offersto Scott based on that understanding,often in an automated manner. That’sa level of personalization that isfar beyond what most companiesare providing today—and yet it’sincreasingly within reach.Let’s talkContactsThis publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by meansof this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for suchprofessional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision ortaking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall notbe responsible for any loss sustained by any person who relies on this publication.As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detaileddescription of the legal structure of Deloitte LLP and its subsidiaries.Copyright © 2015 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu LimitedThere’s a lot more to personalizationthan this handful of developments—but it’s difficult to think of a world-classpersonalization initiative that doesn’tmake use of these at some level. Wantto know more about how to enhanceyour customer experience, create amore holistic relationship with yourcustomers, and drive topline growth?We should talk.In the meantime, be sure to check back for a monthly dose of the latest issuesdriving the future of technology, media, and telecommunications companies.www.deloitte.com/us/flashpoints@DeloitteTMT #flashpointsAngel VaccaroPrincipalDeloitte Consulting [email protected] WigginsPrincipalDeloitte Consulting [email protected] GreulichSenior ManagerDeloitte Consulting [email protected]