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Putting in place a multi channel optimization framework

écrit par René Lefebure

19 août

Multi channel optimization consists in distributing different contacts in the most productive manner for the company. As with all optimization work, one must identify the parameters which may influence performance, that is to say, the transforming of a contact into a business deal.

Determining the optimal combination of Client x Channel x Offer x Time x …

Targetted clients

The quality of the target with respect to different offers is one of the most important parameters. Optimization requires the putting in place of scores (probability of subscription) by client for each product.

A first step consists in building scores by product or by product group. The score value depends on several parameters with a function f(x) but the comparison between scores depends on factors such as product age or product development. How can one have a score for a new product when comparing the value of scores for products distributed between 2% and 40% of the clients?

A « normalization » of the scores is thus a necessary first step.

A second step is to make certain of the client’s equipment score rate. In effect, if 80%

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of the clients have only one score, we will optimize only on the 20% that are multi-scored.

A « diversification » of the scores is thus a necessary step.

A third step consists in introducing rules for prioritizing which will allow for the introduction of the company’s strategic priorities :

– priority of a campaign

– priority of scores per client

The management of priorities often leads to an under optimization. As the objective is to maximize total productivity, it is frequent to have an iterative approach so as to progress towards the best solution.

Channel attraction

If the « product-client » scores give an attraction or a target… the choice of a channel must allow for the spreading of a campaign between channels.

The mechanism for this spread is much more complex than the maximization of a function. One must navigate between different minimal and maximal constants as a function of the channels (almost without maximal limit for the Web channel… but with important maximum constraints for call centers).

At a first level, one must make certain of the current attraction of the client… is he single or multi channel? Which channel does he use?

The construction of FRAT type indicators per channel (frequency – recency – time – type) allow for the evaluation of its attractiveness by type of operation and by channel. The multi-channel clients with a large palette of actions must be isolated because they represent clients with the strongest arbitration possibilities. The “rare pearls” are the multi score and multi-channel clients ; they must be quantified (numerous allocation possibilities).

Single score and single channel clients are « constraints » as they offer no arbitration possibilities.

The optimization framework
The construction of an optimization framework measures a company’s flexibility and optimization possibilities.

We find the 2 previously cited dimensions :

– distribution of single and multi-score clients

– distribution of single and multi-channel clients

A company wanting to put a multi-channel logic into place must necessarily clarify the numbers in the different parts of the frame so as to put the first corrective actions in place. An optimization search with a tool such as the SAS Marketing Optimization allows for moving into an operational phase of optimized contact orientation … because there are true optimization possibilities.

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