Contemporary Analysis

Data Science

Grant Stanley

Predictive Analytics improves M&A Activity

There have always been two major ways to expand your business:  Grow it, or Buy it.  This brings up some interesting questions about which is more beneficial.  The correct answer is usually based on cost of customer acquisition and customer lifetime value.  Right now, with the cost of client acquisition being so high, companies are turning to buying distressed businesses.  One, it eliminates competition, and two, the customers can be acquired "on sale".  While mergers and acquisitions are common across all industries, there seems to be a significant propensity for growth by buying in the banking industry.

The unique problem that is causing an increase in the " buy them" thought process is that in banking their revenue generating power has dwindled with the decline of interest rates.   Not only that but as clients leave for competitors by natural attrition, there is a dire need for new customers.  Buying seems to solve both of these.

While it may solve the issue of new customers at a reduced cost, how to transfer the old customer base to the new bank has always been a major problem.  First, you have a bevy of new customers who have not gone through your buying process.  You have no idea who they are and why they are in the product they are in.  Secondly, you can fix problem number one by keeping the staff from the bought bank, but they're not sure if the customers are in the correct products anymore either because they don't know what products they have to sell.

Tadd Wood

The Predictive Analytics Revolution - Are you sitting on the sidelines?

Predictive analytics (or Big Data) is here to stay. You may not understand it. You may not believe that it really works. But the reality is this: your competitors (and it may be just one or two of them) are using predictive analytics to chew up market space as you remain on the sidelines.

Don’t believe me?

Grant Stanley

Predictive Analytics in Retail

Data is no good if you can't get it quickly enough and act quickly enough on it. Its all about getting the data fast and acting on it fast - Andrew Pole

Predictive analytics solves many differnt problems in a many facets of business. The New York Times published an article in February about the retail chain, Target. Target knew that if they could predict buying patterns in a certain group of consumers, they could influence those consumers purchases. Target was smart, they knew exactly who they wanted to go after.

Andrew Pole, a statistician working for Target, created a pregnancy-prediction model that was able to track spending habits and predict when a woman is pregnant. Pole said that, “We knew that if we could identify them in their second trimester, there’s a good chance we could capture them for years. As soon as we get them buying diapers from us, they’re going to start buying everything else too. If you’re rushing through the store, looking for bottles, and you pass orange juice, you’ll grab a carton. Oh, and there’s that new DVD I want. Soon, you’ll be buying cereal and paper towels from us, and keep coming back.”

Grant Stanley

New Pew Survey on Big Data | Big Data is the new Oil | 'Minority Report' software hits the real world

Why data trumps experience in trial conversion: "Using predictive analytics to qualify trial users and focus on those that are most likely to convert can double conversion rates. In a 2012 study, the Aberdeen Group published a finding that companies using predictive analytics have a 73% sales lift versus companies that did not. ... Publishers should use predictive analytics to develop trial scoring rules. These scoring rules can constantly prioritize trials in their likeliness to convert which increases close rates and sales productivity. These same predictive analytics are useful in design of trial parameters such as length and access limits." (Business Insider) http://goo.gl/6P95I

Connect Big Data With Customer Behavior to Improve Social, Email, and Web ROI: "Since we have lots of data, we have lots of integration challenges. ... Mastering that flow of data between the places that generate it (click-stream, communities, sentiment analysis, email and SMS messaging, and portals) and the systems that utilize it (marketing automation, messaging delivery, and social publishing) is creating complexity, as well as opportunity."

Grant Stanley

How Big Data Can Bring Big Sales / Insurance Industry See Vanlue in Analytics

How Big Data Can Bring Big Sales: The holy grail of retail has been to anticipate what consumers need even before they realize they need it. ... Take printer cartridges, for example. There's nothing worse than having to print a boarding pass with the taxi waiting outside and realizing you're out of ink. Today, office supply retailers are able to track purchases of customers' in-store credit cards and rewards cards and, based on purchase history, anticipate when a consumer might need to reorder a product. Marketing can send an email offer for printer cartridges as well as an accompanying promotion for paper, with a guaranteed delivery time of 24 hours. (ZDNet) http://goo.gl/grqOZ

Grant Stanley

Big Data In The Travel Industry and More

How To Make The Most Of 'Big Data' In The Travel Industry: "There is a 'big data' revolution underway in the travel and hospitality industry but travel companies need to be clear about the challenges. ... Data analytics is an interesting prospect for the travel sector as so many data streams can be combined. ... Business analytics pulls insights from vast databases commonly referred to as 'big data'. To be successful and maximise the value of this, firms need to be very focused and disciplined."

Grant Stanley

Forbes: The Age of Big Data / A Looming Talent Gap For Data Scientists / Why Companies Are Spending More on Analytics

The Age of Big Data: "...Big Data has the potential to utterly transform the relationship that individuals have with institutions, customers with companies, patients with the healthcare system, students with universities, and voters with government. And that means once it has fully penetrated society and industry, the Big Data revolution may very well prove a turning point in our economic – and ultimately, cultural – history as great as the electronics revolution. . . perhaps even as great as the first and second Industrial Revolutions."

Grant Stanley

Analytics Market Grows in 2012

Analytics Market Grows in 2012

"The global market for business analytics software grew roughly 14 percent in 2011, fueled by pervasive hype about 'big data' as well as new technological innovations, according to a report unveiled by analyst firm IDC yesterday. Between now and 2016, the business analytics market will have a compound annual growth rate of 9.8 percent, reaching US$50.7 billion, IDC said." (Global Financial Network) http://goo.gl/HL4qA

-- "As part of that overall business analytics segment, the data warehousing platform software portion represented the fastest growth, at 15.2 percent in 2011 compared with 2010. IDC also pegged analytic application growth at 13.3 percent last year from 2010, and BI and analytic tools at 13.2 percent last year from 2010." (Information Management) http://goo.gl/FTX8Y

Grant Stanley

Analytics and the Nimble Corporation

Brian Sommer at ZDNet has an excellent three part blog series about nimble verses the ossified companies and how each will use big data analytics technology. (Mr. Sommer defines ossified companies cease to develop and innovate and becoming stagnant or rigid in their ways.)

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