KXEN, the leading provider of predictive analytics for business users, announced that Tipp24, one of Europe's leading lottery brokers, quadrupled the performance of its marketing campaigns with InfiniteInsight™, while dramatically boosting the productivity of its analytics team.
"What really impressed me about InfiniteInsight™ was its outstanding performance," said Pankaj Arora, senior analytics consultant. "In our first year using InfiniteInsight™, we realized a 300 percent uplift in targeting accuracy." With the precision made possible by KXEN, the company can now achieve its marketing performance targets while cutting the size of the target audience for any individual campaign down by 25 percent.
Tipp24, an online lottery broker that makes it easy for people to play games like Lotto and Euro Millions online, wanted to use predictive analytics to optimize the customer lifecycle. Before deploying InfiniteInsight™, Tipp24 lacked crucial information about the customer lifecycle, for example, whether people were increasing their use of Tipp24 products or reducing or stopping their use altogether. Tipp24 also couldn't foresee what a customer would do next.
Prior to InfiniteInsight™, Tipp24 did not have the experience or bandwidth to deploy predictive analytics within the company. Tipp24 selected InfiniteInsight™ after comparing its performance with competitors like SAS and SPSS. The company quickly realized that other solutions could not scale, creating a bottleneck in the company’s desire to deliver predictive models across all of their marketing activities.
With InfiniteInsight™, Tipp24 can recognize customer segments and patterns of customer behavior to improve opportunities for customer acquisition as well as cross-sell, up-sell and retention. For example, by offering products that fit into specific stages of the customer lifecycle, Tipp24 can convert one-time players into returning customers. The company can also identify which players might be interested in weekly, monthly or permanent tickets, and which Lotto players might be interested in playing other kinds of lottery games, like Euro Millions. It can predict which active customers are at risk of becoming inactive, and which inactive customers have a high likelihood of becoming active again.
Particularly important is the ability to proactively manage relationships with high value customers, including preventing churn and nurturing existing customers into this segment. "We now know who our top customers are and the journey they took," Arora said. "We’re able to apply this knowledge to each customer segment to build overall customer lifetime value and take the next best action with each of our customers."
InfiniteInsight™ optimizes customer interactions across all of Tipp24's customer channels – telephone, direct mail and email – ensuring the company has the agility to quickly adapt to changing consumer behavior and increasing customer satisfaction.
"Imagine being able to tell the management of your company that you know what a customer is going to do in the future," Arora said. "InfiniteInsight™ is our crystal ball."
InfiniteInsight™ works by assigning each customer a score measuring how likely they are to respond to a specific campaign. The scores are then deployed directly in-database to Tipp24’s Oracle data warehouse, reducing the amount of time it takes to prepare and deploy predictive models. “InfiniteInsight’s™ allows us to gain real business value from our investments by deploying scores quickly into production.”
Arora said the speed with which InfiniteInsight™ can be used to optimize customer interactions was a major advantage. "We can focus our resources on strategic thinking rather than on model building," he said. With InfiniteInsight™, Tipp24 can build, test and deploy as many predictive models as they need to support a wide array of marketing activities. In comparison, solutions like SAS require more attention on the mechanics of model building and take up to 10 times longer. Arora said that in his experience, building and deploying a predictive model with InfiniteInsight™ typically takes only a few days as compared to weeks with SAS.
“We’ve made it our mission to provide best-in-class predictive analytics to companies of all sizes,” said John Ball, Chief Executive Officer of KXEN. “Tipp24 has been able to optimize customer relationships with millions of households using InfiniteInsight™ and has achieved astonishing results in a very short time.”
About Tipp24 SE
Tipp24 SE is a leading online lottery broker based in Hamburg, Germany with a marketing presence in Italy, Germany, Spain and the United Kingdom. Founded in 1999, Tipp24 is listed on the Frankfurt stock exchange. In 2010 it reported 104 million euros in revenue. Key products include Clubs, Euro Millions, Keno, Lotto, and scratchcards.
KXEN (kxen.com) is revolutionizing the way companies use predictive analytics to make better decisions. Based on patented innovations, the company's flagship product, InfiniteInsight™, delivers orders of magnitude improvements in speed and agility to optimize every step in the customer lifecycle - including acquisition, cross-sell, up-sell, retention and next best activity. Proven with over 400 deployments at companies such as Bank of America, Barclays, Wells Fargo, Lowe’s, Meredith Corporation, Rogers, and Vodafone, KXEN solutions deliver predictive power and infinite insight™. KXEN is headquartered in San Francisco, California with field offices in the U.S., Paris and London.
InfiniteInsight™ allows us to factor in all sorts of data that we couldn't use before and it might well be that just one of those extra variables is the one that is key to a whole campaign.
KXEN Europe Contact
Caroline Tailleferd, T: +33 1 41 44 79 54 / E: caroline.tailleferd[.]kxen.com.