Company selects KXEN’s InfiniteInsight™ to build targeted messages for its more than one million paying subscribers

SAN FRANCISCO – June 14, 2012KXEN, the leading provider of predictive analytics for business users, today announced that Rhapsody, America’s number-one premium subscription music service, has purchased KXEN’s flagship product, InfiniteInsight™, to boost member engagement and optimize each stage of the customer lifecycle.

With more than one million paying subscribers listening to in excess of 16 million songs, Rhapsody is collecting massive amounts of “big data” from each customer’s individual experiences on the music service, including website and mobile clickstreams, listening activity, music preferences and purchase history. The company’s focus on customer experience led management to look into new ways to improve the music service, identifying a huge opportunity to leverage its wealth of customer information by using predictive analytics to personalize each and every customer interaction.

Prior to selecting KXEN, Rhapsody relied on historical reporting techniques to understand such metrics as the number of days of recent activity and average number of songs played to understand customer engagement trends; however the company found that these indicators only told part of the story.

After evaluating several predictive solutions, Rhapsody selected KXEN’s InfiniteInsight™, based on its easy-to-use, automated learning approach for rapid modeling. With KXEN, business analysts and data scientists can quickly build best-in-class predictive models at the speed required by the business.

In the initial phase of deployment, Rhapsody will use InfiniteInsight™ to increase customer engagement on the music service. Using predictive scores calculated from models built with InfiniteInsight™ that describe a subscriber’s unique propensity to do things like click on a recommended song or album, Rhapsody can match individuals to its huge inventory of content, including custom playlists, radio stations and blog posts created by its staff of music experts.

Rhapsody will integrate InfiniteInsight™ with its Aprimo campaign management system to deliver targeted messages across customer-facing channels such as sending out weekly emails or notifications to a mobile device. By driving higher open and click-through rates through personalization, Rhapsody expects to significantly increase key performance metrics (KPIs) – like customer activity rates (total usage days and number of soundtrack plays), customer lifetime duration (number of months they use the service) and lifetime revenue – which Rhapsody intends to use to evaluate its success.

KXEN’s automated learning approach to predictive analytics is instrumental for today’s companies like Rhapsody looking to leverage the massive amounts of big data collected on a daily basis from websites or interactive applications. KXEN’s unique approach allows businesses to analyze all of this valuable information, including the fine-grained customer behavior across all customer touch points. Typically this involves thousands of attributes, including time-based derived aggregates that are calculated over multiple successive periods (days, weeks or months), ensuring that all relevant information is used to improve the accuracy and robustness of predictive models. For example, a customer’s listening preferences may vary depending on the device used (e.g. computer, phone, or the more than 70 other supported electronic devices, from Internet-connected stereo systems to TVs, DVRs and portable music players) or the time of day.

Traditional predictive solutions force data scientists to rely on “a priori” knowledge, making assumptions on what data is useful and in the process, discarding vast quantities of potentially predictive information. Using InfiniteInsight™, Rhapsody will be able to analyze a full spectrum of customer data from their Teradata data warehouse and Hadoop system to determine in stack-rank order the predictive importance of each attribute.

Specifically, Rhapsody’s big data analytics approach includes building predictive models from the following:

  • Over 16 million songs
  • 10 years of listening history
  • More than one million customers
  • Big data sources like application clickstreams, listening history, and Omniture weblogs

Rhapsody also initially plans to use KXEN’s automated segmentation and clustering capabilities to analyze the makeup of its membership. This insight will be used to further personalize customer communications and to tailor marketing messages.

“We are eager to unlock the value in our usage data with InfiniteInsight™,” said Michael McGinn, VP, customer experience, Rhapsody. “We believe that KXEN can allow us to take customer engagement to a whole new level, by improving the personalization capabilities of our products and increasing overall customer loyalty.”

“KXEN is committed to helping e-Businesses like Rhapsody use big data to personalize their customer relationships,” said John Ball, CEO, KXEN. “Rhapsody is one of the world’s largest music services and we’re excited to have the opportunity to partner with such an innovative company in their success.”

Supporting Resources

For more information on KXEN and InfiniteInsight™, please visit:

About Rhapsody

The Rhapsody® digital music service (www.rhapsody.com) gives subscribers unlimited on-demand access to more than 16 million songs, whether they’re listening on a PC, laptop, Internet connected home stereo or TV, MP3 player or mobile phone. Rhapsody allows subscribers to access their music through more touch-points than any other digital music service, including mobile phones from Verizon Wireless and MetroPCS, through Rhapsody applications on the Apple iPhone, iPod Touch and iPad, RIM BlackBerry and Android mobile platforms as well as through devices from Vizio, SanDisk, HP, Sonos and Philips. Rhapsody is headquartered in Seattle, with offices in Frankfurt, London, Luxemburg, York and San Francisco. Rhapsody, and the Rhapsody logo are trademarks or registered trademarks of Rhapsody International Inc. Follow @Rhapsody on Twitter and keep up with the latest on the Rhapsody Facebook page.

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About *KXEN*

KXEN is revolutionizing the way companies use predictive analytics to make better decisions on petabytes of big data. 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 AAA, Allegro, Bank of America, Barclays, Belgacom, CBS Interactive, ING Direct, Lowe’s, Meredith Corporation, Mobilink, Overstock.com, PT XL Axiata, RealNetworks, Rhapsody, Rockwell, Rogers, Sears, SFR, Shutterfly, Stage Stores, U.S. Cellular 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, London and Bangkok.

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