Marketing & Sales
Each customer can be predictively scored for sales-related behavior such as purchases, responses, churn and clicks.
The scores then drive enterprise operations across marketing, sales, customer care and website behavior. In this way,
predictive analytics delivers its unique competitive advantage to a range of customer-facing activity.
Predicting Marketing Response
Predicting direct marketing response, the most established business application of predictive analytics, delivers tremendous return.
By suppressing those customers less likely to respond, costs are slashed, so profit goes up.
Preventing Customer Churn
Churn modeling may be the hottest business application of predictive analytics. While retaining customers is a top objective of many organizations,
effective retention incentives, such as a discount offer, can be quite costly. With targeted retention, the growth rate of your customer base increases and compounds.
Scoring and ranking transactions with a predictive model leverages the organization’s recorded experience with fraud to dramatically boost fraud detection.
Since a team of investigators can inspect only a fixed number of suspected transactions each week, delivering a more precisely identified pool of candidate
transactions – with fewer “false alarms” (false positives) – renders their time more effectively spent and more losses prevented or recouped.
Predictive analytics improves product manufacturing, testing and repair in many ways. During production, faulty items are detected on the assembly line.
Once products are in the field, reliability modeling determines which components are likely to fail or, in response to customer calls, which are likely to require repair.
Core Business Capacity & Customers
Providing the sharpest of competitive edges, predictive analytics is the means with which to hold this ground.
- Greater relevancy, by way of more precisely targeted marketing.
- Better products and services, by way of improved core business capacity.
- Improved transaction integrity, by way of fraud detection.
- Cheaper prices, by way of greater efficiency.