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Sense Networks




Mining Customer Location
Data to Provide Business
Intelligence
   Tony Jebara




                                     1
Sense Networks




www




A network of online places                    2
Sense Networks




facebook




A network of online people                    3
Sense Networks




From online to real networks?
What’s next?

                                  a network of real places
     GPS
     LBS
   Location
     Data
                                  a network of real people




Online data is easy to get, what about the real world?
                                                              4
Sense Networks




GPS, LBS, and location data
 Collaborative   Marketing     Advertising   Search           Social
   Filtering                                              Recommendation



                             SENSE NETWORKS
           ANALYSIS, NETWORKS OF PLACES & PEOPLE, SEGMENTATION




      GPS
      LBS
    Location
      Data
                  VEHICLES       APPS        DEVICES      CARRIERS
                                                                           5
Sense Networks




The Old View of LBS Data



                            =
Single Ping @ Starbucks:
No personalization, no targeting
Can’t use a single ping, too much error in space & time…
It’s not just about when and where but also about who        6
Sense Networks




The New View of LBS Data



     +                      =      Health & Fitness
                                   Young Adult
                                   Outdoorsy




Location history for understanding & personalization
Store data over space and time to overcome accuracy issues
Lesson: save your LBS data to segment your customers!      7
Sense Networks




Who Has Historical Data?                       User
             Verizon T-Mobile
 Sprint Vodafone AT&T                    Device Mfgrs


        Carriers                    Nokia   Samsung
                                   Google RIM

                                           Qualcomm
            Publicis           DATA Newfield
Bank of America WPP                                  Polaris
                           GloPos Ericsson
 Nielson
      Google Omnicom       TruePosition Alcatel-Lucent
                               Nokia Siemens Networks
                         Airsage
         Other
                          Loc-aid     Infrastructure
                           Pinch
    Ad/Content               WaveMarket                     8
Sense Networks




Infrastructure Providers
                                                  2009 Q1

                                                  missing:
                                                  small &
                                                  enterprise
                                                  players:
                                                  Newfield,
                                                  Airsage,
                                                  ZTE, etc.


•  nfrastructure looking for new competitive advantages
 I
•  long with Carriers: looking sources of top line growth via
 A
        •  argeting, advertising, content delivery...
         t                                                      9
Sense Networks




Carriers and Prepay




•  repay carriers know less and less about their customers
 P
•  ow: Churn management & segmentation w/o billing info
 N
•  oon: targeting, advertising, content delivery...
 S                                                            10
Sense Networks




Ericsson Ad Orchestrator




•  nfrastructure solution to ad targeting/segmentation…
 I
•  ow to get the segments?
 H                                                            11
Sense Networks




  MacroSense Segmentation
  •  ense Networks’ solution:
   S
     Convert massive per-user call/location data  segments
                     SOURCE       MONTHS         PINGS     USERS
Location &                                  18       10b          1.4m
                                             4        8b           4m
Call Data                                   12        2b           4m




   Sense Networks MacroSense

                               MDN           WEALTH        AGE     CHURN       TRAVELER
                               6462123442        200,000     46          6%         30%
        Segmentation           9174341434         35,000     43          4%         20%
                               6468762413        150,000     31          11%        85%

                                                                                          12
Sense Networks




  MacroSense Architecture
  Raw
           Features1….                    Roller
Customer                 Normalizer
 Call &    Features2.…
Location   Features3….
  Data     Features4….
                                      Delta


           Features5…
           ……
 Demo
           ……
  Tree                          Proprietary
 Server    ……                Non-PII Profiles

           ……
           ……
                                                                 User
  SIC      …….                  Learning
                                                               Segment
  Tree                           Engine
                                                                Output
 Server

                                                                     13
Sense Networks




GPS and location data




10+ million devices giving (lat,long,time,acc)… lingua franca14
Sense Networks




                 15
Sense Networks




CitySense: where is everyone
•  itysense: real-time density of users at every street corner
 C
•  oisson models find most active bars/restaurants
 P




                                                                 16
Sense Networks




Next: where’s everyone like me
Need to have a network of people


 Each dot
 is a user

 Dot’s color
 is user’s
 social
 cluster




                                                    17
Sense Networks




Network of People
who is like whom? who co-locates with whom?




                                                          18
Sense Networks




Network of People
Hard to say if User A is like User B…
            User A                         User B




… don’t just look if they co-locate physically
… check if they overlap semantically (network of places)      19
Sense Networks




Network of Places
is place A like place B?
Look at each place’s Flow, Commerce & Demographics




                                                          20
Sense Networks




Network of Places: Flow
Look at flow A to B

Markov transition

Apply MVE on graph

Color code
clusters in graph




                                           21
Sense Networks




Encoding a Person’s Lifestyle
9 example users’
lifestyle matrices

no PII information

compute pair-wise
similarity from
matrices
       =
how much two
people co-locate
semantically

… can then use machine learning to segment, predict, etc.    22
Sense Networks




People Network Segmentation




                     Churn
                     Advertising
                     Marketing
                     Collaborative Filtering
                     Demographics++         23
Sense Networks




Network of People: Segments




    “Young & Edgy”
• Out every night in young,
racially diverse, low income
neighborhoods


                                  “Weekend Mole”               “Mature Homebody”
                               • Out occasionally on          • Rarely goes out, typically
                               weeknights, typically          spends nights in mature,
                               middle-aged, Latino, middle-   white, higher income
                               income neighborhoods           neighborhoods
                                                                                             24
Proprietary & Confidential




     Segmentation: Standard Output
     Convert call, location & lbs data into Claritas type segments
     e.g. Pepsi wants to send ad to only “Young&Edgy”
     Move lbs into established advertising industry…
                                                                SEGMENTATION


                               01 - Millionaires: Millionaires, as the name implies, collects America’s most
                               successful achievers and old money. It ranks first for both median and per-
                               capita income, salaries, self and investment income, home values and net
                               worth, and ranks second behind the Urban Brahmins in higher education and
         Raw                   professional/managerial occupations.

       Customer   MACROSENSE   02 - Country Clubbers: Country Clubbers are one rung down from the
                               Millionaires and ranks second on all measures of income and affluence and
        Call &                 third in college and postgraduate education. These expensive suburbs are
                               packed into our three great metropolitan strips, dubbed “Bos-Wash”, “Chi-Pitts”,
       Location                and “San-San”, with the bulk (40%) in Bos-Wash. Much of this wealth is new
                               money, earned and freely spent by captains of business and technology.
         Data
                               03 - Turbo Boomers: Turbo Boomers rank first in the large “baby boomers” age
                               group of 35-44 and are concentrated in the rapid growth cities of Atlanta,
                               Washington DC, Dallas, Denver, Los Angeles and San Francisco. They are
                               heavy hitters, highly educated and employed in executive and professional
                               occupations ranking second in marriage and fourth for household income.

                               …
25
Proprietary & Confidential




     Segmentation: Car Buyer
     Recommendation & Marketing based on the Network
     Identifying Active New Car Shoppers




     High end large cars for           Low end small cars for lower
     wealthy, middle age families      income, middle/older age
     with kids                         consumers




26
Sense Networks




Case Study: Churn




                                     27
Sense Networks




Case Study: Apps




                                    28
Sense Networks




Discussion: New LBS Opportunity
•  BS and Location more about segmenting customer
 L
•  tore your data to understand your customer
 S
•  se MacroSense to convert LBS history into segmentation
 U

•  nfrastructure (Ericsson, Alcatel, NSN,…): best data sources
 I
•  arriers (AT&T, Sprint,…): want growth, ads, targeting
 C
•  dvertisers (WPP, Nielsen,…): want segmentation
 A

•  ense Networks: segments from location & call data
 S
•  nables online business, segmentation, personalization
 E
       …from Offline LBS data

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Tony Jebara - Sense Networks

  • 1. Sense Networks Mining Customer Location Data to Provide Business Intelligence Tony Jebara 1
  • 2. Sense Networks www A network of online places 2
  • 4. Sense Networks From online to real networks? What’s next? a network of real places GPS LBS Location Data a network of real people Online data is easy to get, what about the real world? 4
  • 5. Sense Networks GPS, LBS, and location data Collaborative Marketing Advertising Search Social Filtering Recommendation SENSE NETWORKS ANALYSIS, NETWORKS OF PLACES & PEOPLE, SEGMENTATION GPS LBS Location Data VEHICLES APPS DEVICES CARRIERS 5
  • 6. Sense Networks The Old View of LBS Data = Single Ping @ Starbucks: No personalization, no targeting Can’t use a single ping, too much error in space & time… It’s not just about when and where but also about who 6
  • 7. Sense Networks The New View of LBS Data + = Health & Fitness Young Adult Outdoorsy Location history for understanding & personalization Store data over space and time to overcome accuracy issues Lesson: save your LBS data to segment your customers! 7
  • 8. Sense Networks Who Has Historical Data? User Verizon T-Mobile Sprint Vodafone AT&T Device Mfgrs Carriers Nokia Samsung Google RIM Qualcomm Publicis DATA Newfield Bank of America WPP Polaris GloPos Ericsson Nielson Google Omnicom TruePosition Alcatel-Lucent Nokia Siemens Networks Airsage Other Loc-aid Infrastructure Pinch Ad/Content WaveMarket 8
  • 9. Sense Networks Infrastructure Providers 2009 Q1 missing: small & enterprise players: Newfield, Airsage, ZTE, etc. •  nfrastructure looking for new competitive advantages I •  long with Carriers: looking sources of top line growth via A •  argeting, advertising, content delivery... t 9
  • 10. Sense Networks Carriers and Prepay •  repay carriers know less and less about their customers P •  ow: Churn management & segmentation w/o billing info N •  oon: targeting, advertising, content delivery... S 10
  • 11. Sense Networks Ericsson Ad Orchestrator •  nfrastructure solution to ad targeting/segmentation… I •  ow to get the segments? H 11
  • 12. Sense Networks MacroSense Segmentation •  ense Networks’ solution: S Convert massive per-user call/location data  segments SOURCE MONTHS PINGS USERS Location & 18 10b 1.4m 4 8b 4m Call Data 12 2b 4m Sense Networks MacroSense MDN WEALTH AGE CHURN TRAVELER 6462123442 200,000 46 6% 30% Segmentation 9174341434 35,000 43 4% 20% 6468762413 150,000 31 11% 85% 12
  • 13. Sense Networks MacroSense Architecture Raw Features1…. Roller Customer Normalizer Call & Features2.… Location Features3…. Data Features4…. Delta Features5… …… Demo …… Tree Proprietary Server …… Non-PII Profiles …… …… User SIC ……. Learning Segment Tree Engine Output Server 13
  • 14. Sense Networks GPS and location data 10+ million devices giving (lat,long,time,acc)… lingua franca14
  • 16. Sense Networks CitySense: where is everyone •  itysense: real-time density of users at every street corner C •  oisson models find most active bars/restaurants P 16
  • 17. Sense Networks Next: where’s everyone like me Need to have a network of people Each dot is a user Dot’s color is user’s social cluster 17
  • 18. Sense Networks Network of People who is like whom? who co-locates with whom? 18
  • 19. Sense Networks Network of People Hard to say if User A is like User B… User A User B … don’t just look if they co-locate physically … check if they overlap semantically (network of places) 19
  • 20. Sense Networks Network of Places is place A like place B? Look at each place’s Flow, Commerce & Demographics 20
  • 21. Sense Networks Network of Places: Flow Look at flow A to B Markov transition Apply MVE on graph Color code clusters in graph 21
  • 22. Sense Networks Encoding a Person’s Lifestyle 9 example users’ lifestyle matrices no PII information compute pair-wise similarity from matrices = how much two people co-locate semantically … can then use machine learning to segment, predict, etc. 22
  • 23. Sense Networks People Network Segmentation Churn Advertising Marketing Collaborative Filtering Demographics++ 23
  • 24. Sense Networks Network of People: Segments “Young & Edgy” • Out every night in young, racially diverse, low income neighborhoods “Weekend Mole” “Mature Homebody” • Out occasionally on • Rarely goes out, typically weeknights, typically spends nights in mature, middle-aged, Latino, middle- white, higher income income neighborhoods neighborhoods 24
  • 25. Proprietary & Confidential Segmentation: Standard Output Convert call, location & lbs data into Claritas type segments e.g. Pepsi wants to send ad to only “Young&Edgy” Move lbs into established advertising industry… SEGMENTATION 01 - Millionaires: Millionaires, as the name implies, collects America’s most successful achievers and old money. It ranks first for both median and per- capita income, salaries, self and investment income, home values and net worth, and ranks second behind the Urban Brahmins in higher education and Raw professional/managerial occupations. Customer MACROSENSE 02 - Country Clubbers: Country Clubbers are one rung down from the Millionaires and ranks second on all measures of income and affluence and Call & third in college and postgraduate education. These expensive suburbs are packed into our three great metropolitan strips, dubbed “Bos-Wash”, “Chi-Pitts”, Location and “San-San”, with the bulk (40%) in Bos-Wash. Much of this wealth is new money, earned and freely spent by captains of business and technology. Data 03 - Turbo Boomers: Turbo Boomers rank first in the large “baby boomers” age group of 35-44 and are concentrated in the rapid growth cities of Atlanta, Washington DC, Dallas, Denver, Los Angeles and San Francisco. They are heavy hitters, highly educated and employed in executive and professional occupations ranking second in marriage and fourth for household income. … 25
  • 26. Proprietary & Confidential Segmentation: Car Buyer Recommendation & Marketing based on the Network Identifying Active New Car Shoppers High end large cars for Low end small cars for lower wealthy, middle age families income, middle/older age with kids consumers 26
  • 29. Sense Networks Discussion: New LBS Opportunity •  BS and Location more about segmenting customer L •  tore your data to understand your customer S •  se MacroSense to convert LBS history into segmentation U •  nfrastructure (Ericsson, Alcatel, NSN,…): best data sources I •  arriers (AT&T, Sprint,…): want growth, ads, targeting C •  dvertisers (WPP, Nielsen,…): want segmentation A •  ense Networks: segments from location & call data S •  nables online business, segmentation, personalization E …from Offline LBS data