9/14/2018 12:46 AM BRK3293 How the Portland Trail Blazers Use Personalization and Acxiom Data to Target Customers Chris Hoder Program Manager, AI + Research © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Challenges with Personalization: 9/14/2018 12:46 AM Challenges with Personalization: Data collection and integration Modeling Deep insights about customers © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Portland Trail Blazers Microsoft 2016 9/14/2018 12:46 AM Portland Trail Blazers Use Case 1: 25% call conversion rate for new season ticket sales Use Case 2: 2x improvement in identifying returning single game ticket buyers “Reaching and engaging fans is a priority for the Trail Blazers, and our work with Azure Machine Learning has delivered real results” – Mike Schumacher, Director of Business Analytics © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Trail Blazers Use Cases 9/14/2018 12:46 AM Trail Blazers Use Cases New fans Fans stop buying tickets Single game ticket buyers Dedicated Fans Use Case 1 Season Tickets © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Trail Blazers Use Cases 9/14/2018 12:46 AM Trail Blazers Use Cases New fans Fans stop buying tickets Use Case 2 Single game ticket buyers Dedicated Fans Season Tickets © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Use Case 1: Improving Season Ticket Sales 9/14/2018 12:46 AM Use Case 1: Improving Season Ticket Sales © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

14 4% A TYPICAL SALES CAMPAIGN LEADS TO ONLY CONVERSION RATE CURENT CAMPAIGNS ARE BASED ON HISTORICAL INSIGHTS INSTEAD OF PREDICTIVE TARGETING... OPPORTUNITIES & CHALLENGES A TYPICAL SALES CAMPAIGN LEADS TO ONLY CONVERSION RATE 4% AVERAGE TENURE OF PACKAGE HOLDERS IS OVER YEARS 14

24.8% A PREDICTIVE MODEL WAS BUILT TO IDENTIFY CUSTOMERS MOST SOLUTIONS & IMPACT A PREDICTIVE MODEL WAS BUILT TO IDENTIFY CUSTOMERS MOST LIKELY CHANGE SEASON TICKET PURCHASE PLAN USING THE MODEL IT TAKES JUST 16% OF THE NUMBER OF LEADS TO REACH THE SAME NUMBER OF CONVERSIONS CONVERSION RATE OF LEADS IDENTIFIED WAS 24.8%

Demo – Azure Machine Learning 9/14/2018 12:46 AM Demo – Azure Machine Learning © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Use Case 2: Single Game Purchase Propensity © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Opportunities & Challenges 9/14/2018 12:46 AM Opportunities & Challenges 16% fans return from the prior year Want to drive increased fan loyalty Limited Info about customer preferences © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Our Solution Integrated with Acxiom data 50% boost in model recall 9/14/2018 12:46 AM Our Solution Integrated with Acxiom data 50% boost in model recall In testing, 30% of leads purchased tickets © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Data Modelling Deep-Dive © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Binary Classification 9/14/2018 12:46 AM Approach Profile Customer From Trail Blazers Behavioral Patterns Demographic information CRM & Sales information Team preferences From Acxiom Financial, spending & product purchasing information Interests & propensity Lifestyle Binary Classification Is Retaining? Target a high recall Cost on FPs is low Try Various Features Feature selection Derived features Data transformation © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Work Flow Azure SQL Database Azure Machine Learning Azure Blob Storage 9/14/2018 12:46 AM Work Flow Demographic Sales Records Attendance Extract data fields Generate new data Labeling data Features Label Acxiom Data Feature selection Prediction Model Model Training Azure SQL Database Azure Blob Storage Azure Machine Learning © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Importance of Acxiom Data 9/14/2018 12:46 AM Importance of Acxiom Data Trail Blazers Data Only Trail Blazers & Acxiom Data Top 15% customers Top 15% customers 0.276 0.520 © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Only Use Trail Blazers Data Integrate Trail Blazers & Acxiom Data 9/14/2018 12:46 AM Model Performance Only Use Trail Blazers Data Integrate Trail Blazers & Acxiom Data Improvements with Acxiom Data Better overall Recall value (49.4% improvement) 2 Increased F1 Score (19.0% improvement) 3 1 Captured more TPs (49.6% improvement) © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Machine Learning, Analytics & Data Science Conference 9/14/2018 12:46 AM Insights & Learnings Learnings Azure ML provided tooling for data manipulation and model building User’s consumption data, interests, and lifestyle played a significant role Integrating Acxiom data provided a significant boost to model accuracy Use Data + ML to know your customers better and drive revenue Next Steps Run a live marketing campaign using leads generated Automate the pipeline for regular lead generation Expand analytics to new use cases throughout the Blazers © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Please evaluate this session Tech Ready 15 9/14/2018 Please evaluate this session From your Please expand notes window at bottom of slide and read. Then Delete this text box. PC or tablet: visit MyIgnite https://myignite.microsoft.com/evaluations Phone: download and use the Microsoft Ignite mobile app https://aka.ms/ignite.mobileapp Your input is important! © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

9/14/2018 12:46 AM © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.