Think Reactive

One of the most amazing features of the human brain is its ability to recieve and analyze large amounts of data and react accordingly (ex. fight or flight). As analytical information systems evolved over time it seems that emphasis has always been on the ablity to process and analyze data rather then react to it. The result is a lot of information about what happened and even why it happened but little ability to effect and improve what is actually happening now.

So we always have explenations and excuses and perhaps ideas for improvements but we lack the ability to effect the present in order to change the future outcome.

Well, as you may have guessed, I think this should change. I think we should focus on what our applications can do with data rather then just displaying it in various manners. Dont get me wrong, the analysis offered by tools in the BI, web analytics and fraud detection fields is important but as a step towards action, not as a goal of its own. We should focus on predictive and reactive analysis to leverage the value of the data and the events around us.

I belive in "Turning Insight into Action" - and that is the heart of thinking Reactive. Nowadays, when there is so much information flying around, changing in an ever growing pace we should all think of how to turn this information and it analysis to actions that would help us achieve our goals whther they are selling more, securing better or improving service.

A report is really valuable if you have the means to turn its conclusions into actions while the relevant objective can still be reached. Here's an example: If I review daily reports of online trafic to my web site and can detect visitors location, organization and the pages they have viewed but cant interact with them (preferably automatically) to achieve my goals (get leads, sell, share...) based on these facts its not worth much since they are out of my web site by the time I read the report. They may or may not return and I might not recognize them if they do. Valuable data is waisted due to lack of ability to react on time.

Think Reactive! Dont waist your time on interesting insight that you cant turn into effective action.

Online Financial Applications, Top 10 Use Cases for Real-time Reactions

I am often asked what are some common use cases for the ReactiveWeb real-time behavioral reaction service in the financial sector so here they are starting with the .
The basic idea behind all of these scenarios is the same - React to online behavior immediatly and according to its business relevance and value.
Here we go...

1. Sales: Customer Up Sell & Cross Sell.

The Behavior > An existing customer examines his current investment portfolio. This customer's porfolio has a positive yield and he has an avarage order history of over 3 stock orders per month.

The Reaction > Offer this customer a VIP brokerage service proposal online (a free consultancy meeting or 3 month free service may also do the trick...)

2. Sales: Potential Lead generation.

The behavior > An existing customer enters his online banking application, after reviewing his balance he visits the loans sector of the site, visiting more then 4 pages of long-term loans.

The reaction > Send business event to CRM systems, "John Smith, interested in long term savings, event date: 10/08/2008"

3. Sales: New Customer Hooking.

The behavior > An anounimous customer visits the banks commercial website, he enters the student's loans sector visiting more then 5 pages for longer then 5 minuts.

The reaction > Interact with online user by 1. offering a specific loan and 2. Offering a local branch consultant to contact upon contact details submition

4. Customer Service: Improve Customer Retention

The Behavior > An existing customer checks the cash-out options on his savings account or insurance policy. He does this for the first time in atleast several months and goes into the details page of the terms of termination/cash-out.

The Reaction > Offer him an immediate online loan or connect to local branch for financial planning. Save the customer before leaving and sell another product.

5. Customer Service: Assist in Transaction Completion

The Behavior >A customer tries to buy stock through the banks online application, after filling out all the relevant details in the 3 step form he submits the order and recieves an error as a response. The order amount is higher then $20,000. He tries twice again and recieves the same error.

The Reaction > 1. If this is a VIP customer offer immediate online human assistance, via audio or video 2. If the error is relatedto missing information, pop up a window highlighting the error cause (only after the second time) and offer the solution.

6. Customer Service: Improve Online Self-Service

The Behavior > A VIP customer is trying to retrieve a specific report or any other action and repeats it more then 3 times with no success.

The Reaction > Check service representative's availabilty and offer immediate audio/video call to resolve issue

7. Customer Service: Customer Experience Management

The Behavior > Detect slow serving pages or user session from specific geographical regions with slow avarage response rates across their sessions

The Reaction > Alert system applications and personnel with specific information

8. Security: Provide Detailed Audit Trail

The Behavior > Any monitary related action performed by the customer or even lower levels of behavior can be audited non-intrusively according to predefined rules

The Reaction > Log detailed user session to any logging or SIEM application and offer different levels of auditing according to regulation or customer requirements.

9. Security: Detect Fraudeulent Behavior

The Behavior > Detect specific fraudulent behaviors not only in the geo/ip/browser level but in the actual application behavior

The Reaction > 1. Feed existing fraud detection applications in real time 2. Invoke scoring processes 3. Redirect/Block user sessions

10. In-house Advertising

The Behavior > A customer with a large positive balance enters the web site

The Reaction > Display investment related banners

These example use-cases are obviously a small portion of the various relevant use cases but I hope they provide a guideline to the high potential in real-time reactions to online behavior

Amazing the Optimist

a. Customer behavior is valuable - every one agrees.
b. Customers interact over the web - every one agrees.
c. Detecting and reacting to online customer behavior is important - again, agreement.
a+b+c= There must already be something that does this - Amazingly...There isnt.
This post is not about a company or a product, it is about one of those things that everyone agrees is needed, some even rationalize it to already exist yet oddly enough it does not. and I was amazed to find just how badly it is needed and how few, if any, solutions deliver it, especially now that recession hits and companies look to better utilize the online channel
It being real-time reactions to online behavior.

I am usually quite the optimist, in life as well as at work. Working as a business development manager for several years made me even more optimistic - you have to be to try and create new business, BUT all of this optimism wasn't enough to stop me from being AMAZED once I the actual situation with enterprizes and ISV's.
It seems that this basic understanding of the value of customer behavior, the fact that customers are behaving more and more over the web and the low conversion rates in current web sites did not boil strongly enough to produce relevant solutions or maybe its steam was used in other directions.

Ill try to give some examples in my next post...

Mike
mike.telem@activeinsight.net