In the recent years, increasing number of companies are making analytics and Business Intelligence their top priority. A 2009 IBM survey showed that 83% of CIO’s believe Business Intelligence is the single largest source of competitive advantage for their companies.
Bureau of Labor studies in USA believes that Management Analytics jobs will increase by 24% between 2008-2018, much faster than that of average job growth for the rest of the economy.
The word ‘analytics’ is being searched more frequently across India every single year since 2009.
In US, average salaries for analytics workers went up by 10% in the last one year.
‘Analytics’ means the extensive use of data, statistical and quantitative analysis, exploratory and predictive models and fact based management to drive decisions and actions. Such analytics may be the input for human decisions or may fully drive automated decisions.
Why Predictive Analytics is a must in today’s business environment?
- It can help to change the game in an industry quite profoundly
- Outperform your competitors
- Sell (new) products/services based on analytics
- Identifying profitable and loyal customers, and charging them the optimal price
- Maintaining lowest possible level of inventory while avoiding out-of-stock
- Hiring, retaining and promoting the best people in the industry
- Choosing the best location for your stores
- Selecting the best candidates for mergers and acquisitions
- Optimizing supply chains and delivery times
10. Identifying customer preferences
- Helps companies like ING, Vodafone and ABN Amro to significantly improve their direct marketing activities by enabling them to predict the preferences and needs of their individual customers and base the marketing campaigns on these needs.
- These companies, reduced their costs of marketing activities by 15% to 30%, they doubled the response rates and generated 25% to 50% more profit out of their marketing actions.
Predictive Analytics in Call Center
- Helps companies like Aegon and ABN Amro to effectively turn their service call centers into profit centers by automatically alerting call center agents on hidden product needs and retention risks for the current caller and advise the most appropriate offer and treatment during the call.
- A very high accuracy is achieved by analyzing the current call and combine this with historic and other data on the specific customer.
- In one case this system was able to turn a service call center into a profit center, generating $30 million additional sales per year.
- Has helped organizations like ING, Banco Commercial and many others to improve their claim handling processes, and enabled them to:
- Identify which customers can be trusted and focus on excellent service to these customers
- Reduce claim handling costs by 20% to 40% by selecting low risk claims for fast tracking
- Discover twice or three times as much fraud by identifying the highest risk claims
Cablecom, a Swiss-based telecommunications provider, leveraged IBM SPSS predictive analytics tools and succeeded in reducing customer churn from 19% to 2%. The telecommunications company surveyed customers at critical interaction points, used the survey results to build models that predicted satisfaction levels, and created and executed campaigns aimed at retaining at-risk customers’
Case History of a buyer who regularly visits Shoppers Stop
I recently went with my friends to Shoppers Stop store at Inorbit Mall, Mumbai. I am a regular consumer of their products. I was pleasantly surprised that the footwear section has been moved to the ground floor. Previously, it was on the first floor. Now it is right next to the clothes & garments section. When I asked about the change, said the salesman out there, that it is the result of an adjacency analysis Shopper’s Stop had performed. After conducting analysis on 24 months of customer data, they found that consumer who buy the ethnic wear, also buy foot wear. Based on this finding, they changed the foot wear section to the ground floor next to the garments section. After the change of location, the sales of foot wear went up by 25%.
Following are some of the Indian Companies, which are currently using Analytics for Management Decision Making.
Indian Banks with Analytics operations
- ICICI, Mumbai
- HDFC, Mumbai
Mobile Service provider with Analytics Operations
- Vodafone Telecommunications, Chennai, Mumbai
- Nokia Networks, Gurgaon
- Airtel, Gurgaon
Indian companies with Advanced web analytics
- Bharatmatrimony.com (Consim info pvt ltd.), Chennai
- Naukri.com (Info edge group), Chennai
- Timesofindia (Online Newspaper),
- Irevena, Chennai
- Amba Research, Bangalore
Indian Retail stores within house Analytics operations
- Reliance retail.